A) assessed as high when there are no internal controls tested or relied upon by the auditor. B) assessed as low when there are good internal controls in place. C) the risk of a misstatement occurring irrespective of any internal controls put in place by management. D) the risk that the auditor's testing procedures will not detect a material misstatement. A) assessed as high when there are no internal controls tested or relied upon by the auditor. B) assessed as low when there are good internal controls in place. C) the risk of a misstatement occurring irrespective of any internal controls put in place by management. D) the risk that the auditor's testing procedures will not detect a material misstatement.

A) tracking a source document through to the underlying accounting records. B) agreeing the details of a transaction to supporting evidence outside of the company's accounting records. C) the application of audit procedures to less than 100 per cent of items within a population. D) none of the above. A) tracking a source document through to the underlying accounting records. B) agreeing the details of a transaction to supporting evidence outside of the company's accounting records. C) the application of audit procedures to less than 100 per cent of items within a population. D) none of the above.

Exam 8: Execution of the Audit Performing Substantive Procedur

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

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(True/False)

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Question 1

Correct Answer:

Verified

True

Jocelyne Yu is performing procedurand has decided to vouch the balance in the fixed assets ledger of a furniture manufacturing company back to supporting documentation. She is performing a

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(Multiple Choice)

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Question 2

Correct Answer:

Verified

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

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(Essay)

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Question 3

Correct Answer:

Answered by Examlex AI Copilot

When auditors use analytical procedures to detect unexpected fluctuations in a client's financial statements, they need to evaluate the cause of these fluctuations before they can complete an audit. This is important because it helps auditors understand the reasons behind the fluctuations and determine if there are any potential risks or issues that need to be addressed.

Auditors interpret the results of analytical procedures by comparing the detected fluctuations to industry benchmarks, historical data, and other relevant information. They also consider the client's business operations, economic conditions, and any other factors that may have contributed to the fluctuations. By doing so, auditors can assess the reasonableness of the fluctuations and determine if further investigation or adjustments are necessary.

This interpretation is done to ensure the accuracy and reliability of the client's financial statements. It helps auditors identify any potential misstatements or irregularities that may impact the overall audit opinion. Additionally, understanding the causes of unexpected fluctuations allows auditors to provide valuable insights and recommendations to the client for improving their financial reporting processes and internal controls. Overall, interpreting the results of analytical procedures is a critical step in the audit process that helps ensure the integrity of the financial statements and the effectiveness of the audit.

The levels of evidence obtained when performing substantive procedurincludes:

(Multiple Choice)

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Question 4

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

(Multiple Choice)

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Question 5

Using computer assisted audit techniqu(CAATs) makthe audit:

(Multiple Choice)

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Question 6

Ying Ye believthat she will have to employ sophisticated substantive audit procedurfor her client. What contributto this decision?

(Multiple Choice)

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Question 7

Inherent risk is:

(Multiple Choice)

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Question 8

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

(True/False)

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Question 9

Audit sampling is the application of audit procedurto less than 100 per cent of items within a population.

(True/False)

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Question 10

Vouching involves:

(Multiple Choice)

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Question 11

Larry French is trying to determine the extent of testing his team will have to perform in order to determine whether controls are working. How will he decide how much testing to perform?

(Multiple Choice)

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Question 12

Analytical procedurthat provide persuasive evidence include:

(Multiple Choice)

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Question 13

Roll-forward procedurare performed during the period between the end of the financial year and the date of the audit report.

(True/False)

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Question 14

Analytical procedurthat provide persuasive or corroborative evidence contribute minimal support for the audit conclusion.

(True/False)

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Question 15

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

(Multiple Choice)

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Question 16

The purpose of substantive procedurincludobtaining direct evidence as to:

(Multiple Choice)

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Question 17

Matilda Papas has been asked to lead her audit team in the audit of the Toronto Raptors basketball team. She performed a review of their risks and found that the team's risks tend to be driven by the nature of certain significant accounts or business activitithat the Raptors pursue. This risk is

(Multiple Choice)

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Question 18

Substantive testing can be conducted using which of the following procedures?

(Multiple Choice)

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Question 19

Comparing salcommissions or bonuswith related salprovidwhat level of evidence?

(Multiple Choice)

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Question 20

Showing 1 - 20 of 62

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

Jocelyne Yu is performing procedurand has decided to vouch the balance in the fixed assets ledger of a furniture manufacturing company back to supporting documentation. She is performing a

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

The levels of evidence obtained when performing substantive procedurincludes:

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

Using computer assisted audit techniqu(CAATs) makthe audit:

Ying Ye believthat she will have to employ sophisticated substantive audit procedurfor her client. What contributto this decision?

Inherent risk is:

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

Audit sampling is the application of audit procedurto less than 100 per cent of items within a population.

Vouching involves:

Larry French is trying to determine the extent of testing his team will have to perform in order to determine whether controls are working. How will he decide how much testing to perform?

Analytical procedurthat provide persuasive evidence include:

Roll-forward procedurare performed during the period between the end of the financial year and the date of the audit report.

Analytical procedurthat provide persuasive or corroborative evidence contribute minimal support for the audit conclusion.

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

The purpose of substantive procedurincludobtaining direct evidence as to:

Matilda Papas has been asked to lead her audit team in the audit of the Toronto Raptors basketball team. She performed a review of their risks and found that the team's risks tend to be driven by the nature of certain significant accounts or business activitithat the Raptors pursue. This risk is

Substantive testing can be conducted using which of the following procedures?

Comparing salcommissions or bonuswith related salprovidwhat level of evidence?

Introduction and Review of Audit and Assurance

Ethics, Legal Liability and Client Acceptance

Audit Planning I

Audit Planning II

Audit Evidence

Sampling and Overview of the Risk Response Phase of the Audit

Understanding and Testing the Clients System of Internal Controls

Auditing Saland Receivabl

Auditing Purchases, Payabland Payroll

Auditing Inventoriand PPE

Auditing Cash and Investments

Completing and Reporting on the Audit

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