Exam 8: Execution of the Audit Performing Substantive Procedures

Tobias Appel is trying to ensure that he can review controls over purchasing transactions. In addition, he would like to substantiate the dollar amounts he is reviewing. What type of procedures can he perform that will provide evidence as to whether a control is effective as well as if an item is being recorded properly?

There are certain audit procedures that are required to be performed according to various auditing standards. Identify specific examples of such procedures and explain why the procedures are mandatory.

Corroborative evidence confirms audit findings from other procedures.

Analytical procedures are evaluations of financial information made by a study of plausible relationships among both financial and non-financial data. Discuss why analytical procedures are used by an auditor and explain several of the common types of analytical procedures.

Which of the following is not a type of analytical procedure?

Which of following procedures provides an example of minimal support for conclusions?

Vouching involves tracking a source document back to the underlying accounting records.

Before they can complete an audit, auditors need to evaluate the causes of any unexpected fluctuations in a client's financial statements detected by the use of analytical procedures. Explain how auditors interpret the results of analytical procedures and why it is done.

Control risk is assessed to be low when there are no internal controls tested or relied upon by the auditor.

Explain the difference between vouching and tracing.

Jacqueline Martineau was told by her audit senior to ensure that the evidence she provided through analytical procedures was both persuasive and corroborative. Which of the following evidences are persuasive?

Analytical procedures may be used

Which of the following statements is correct?

The primary purpose of vouching is to ensure that

The nature of substantive procedures normally consists of one or a combination of which of the following techniques?

Discuss the factors that influence the extent and timing of substantive procedures.

Ying Ye believes that she will have to employ sophisticated substantive audit procedures for her client. What contributes to this decision?

A significant account is one that could contain material misstatements based upon their materiality and/or relationship to identified inherent and financial statement risks.

Explain the three common sampling strategies that can be applied when the auditor applies representative sampling.

Analytical procedures that provide persuasive evidence include