A) generally rely on the client's IT applications in some way. B) support the ongoing functioning of the programmed aspects of prevent and detect controls. C) can be classified as program change controls or logical access controls. D) do not rely on the client's IT environment for their operation. A) generally rely on the client's IT applications in some way. B) support the ongoing functioning of the programmed aspects of prevent and detect controls. C) can be classified as program change controls or logical access controls. D) do not rely on the client's IT environment for their operation.

Exam 8: Execution of the Audit Testing of Controls

Transaction-level controls are implemented by businesses to reduce the risk of misstatements due to error or fraud and to ensure that processes are operating effectively.

(True/False)

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Question 21

Explain and provide examples of the various techniques commonly used when testing controls.

(Essay)

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Question 22

Manual controls:

(Multiple Choice)

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Question 23

If the tests of controls confirm the auditor's preliminary evaluation of controls, the planned substantive audit procedures are not modified.

(True/False)

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Question 24

Tests of controls will usually be carried out:

(Multiple Choice)

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Question 25

Which of the following is an example of a detect control?

(Multiple Choice)

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Question 26

Enquiry involves the auditor observing the actual control being performed.

(True/False)

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Question 27

The Australian Securities and Investments Commission (ASIC) inspects audit firms' compliance with audit quality and auditor independence requirements. Explain the process used by ASIC in conducting these inspections and critically evaluate their effectiveness at enhancing audit quality.

(Essay)

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Question 28

The greater the degree of reliance on an internal control, the less they test the control to provide the required assurance.

(True/False)

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Question 29

A sampling technique used to reach a conclusion about a population in terms of a rate of occurrence is known as:

(Multiple Choice)

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Question 30

Controls can be classified as:

(Multiple Choice)

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Question 31

The factors to consider when deciding the extent of testing of controls include which of the following?

(Multiple Choice)

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Question 32

A computer program that will not allow a sale to be processed if a customer has exceeded their credit limit is an example of a:

(Multiple Choice)

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Question 33

If the tests of controls confirm the auditor's preliminary evaluation of controls, the planned substantive audit procedures are:

(Multiple Choice)

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Question 34

ASA 230 Audit Documentation requires auditors to document each stage of the audit in their working papers. What are the specific requirements in ASA 230 regarding the contents of working papers and explain the importance of auditors effectively documenting the tests of controls that they have performed?

(Essay)

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Question 35

Enquiry involves the auditor:

(Multiple Choice)

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Question 36

Tracing certain amounts on the bank reconciliation to the accounting records is an example of which technique for testing controls?

(Multiple Choice)

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Question 37

An example of a program change control is:

(Multiple Choice)

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Question 38

An example of a purely manual control is a locked stock cage for high dollar-value items.

(True/False)

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Question 39

Tracing certain amounts on the bank reconciliation to the accounting records is an example of inspection of physical evidence.

(True/False)

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Question 40

Showing 21 - 40 of 40

Transaction-level controls are implemented by businesses to reduce the risk of misstatements due to error or fraud and to ensure that processes are operating effectively.

Explain and provide examples of the various techniques commonly used when testing controls.

Manual controls:

If the tests of controls confirm the auditor's preliminary evaluation of controls, the planned substantive audit procedures are not modified.

Tests of controls will usually be carried out:

Which of the following is an example of a detect control?

Enquiry involves the auditor observing the actual control being performed.

The Australian Securities and Investments Commission (ASIC) inspects audit firms' compliance with audit quality and auditor independence requirements. Explain the process used by ASIC in conducting these inspections and critically evaluate their effectiveness at enhancing audit quality.

The greater the degree of reliance on an internal control, the less they test the control to provide the required assurance.

A sampling technique used to reach a conclusion about a population in terms of a rate of occurrence is known as:

Controls can be classified as:

The factors to consider when deciding the extent of testing of controls include which of the following?

A computer program that will not allow a sale to be processed if a customer has exceeded their credit limit is an example of a:

If the tests of controls confirm the auditor's preliminary evaluation of controls, the planned substantive audit procedures are:

Enquiry involves the auditor:

Tracing certain amounts on the bank reconciliation to the accounting records is an example of which technique for testing controls?

An example of a program change control is:

An example of a purely manual control is a locked stock cage for high dollar-value items.

Tracing certain amounts on the bank reconciliation to the accounting records is an example of inspection of physical evidence.

Introduction and Overview of Audit and Assurance

Ethics, Legal Liability and Client Acceptance

Risk Assessment 1

Risk Assessment II

Audit Evidence

Gaining an Understanding of the Clients System of Internal Controls

Sampling and Overview of the Risk Response Phase of the Audit

Execution of the Audit Performing Substantive Procedures

Substantive Testing and Balance Sheet Accounts

Substantive Testing and Income Statement Accounts

Completing and Reporting on the Audit

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