Question 1

To improve efficiency, auditors test only those controls that they believe are critical to their opinion.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following would NOT be included in a test of a control working paper?

Accepted Answer

A)  the purpose of the test 
B)  a conclusion about whether the account balance is materially misstated 
C)  the work performed 
D)  the findings/results of the testing

Question 3

The auditor had the following procedures in his audit program for a client: (i) Review performance versus forecasts.
(ii) Review performance indicators.
(iii) Review exception reports.
What are these instructions related to?

Accepted Answer

A)  detective controls 
B)  physical controls 
C)  internal controls 
D)  entity-wide controls

Question 4

Attribute sampling is a sampling technique used to reach a conclusion about the total dollar amount of misstatement in an account balance.

Accepted Answer

A) True 
 B)False

Question 5

Re-performance involves the auditor re-performing the control to test its effectiveness.

Accepted Answer

A) True 
 B)False

Question 6

Tests of controls do NOT include which of the following auditing techniques?

Accepted Answer

A)  re-performance 
B)  confirmation 
C)  enquiry 
D)  observation

Exam 8: Execution of the Audittesting of Controls

To improve efficiency, auditors test only those controls that they believe are critical to their opinion.

Which of the following would NOT be included in a test of a control working paper?

The auditor had the following procedures in his audit program for a client: (i) Review performance versus forecasts. (ii) Review performance indicators. (iii) Review exception reports. What are these instructions related to?

Attribute sampling is a sampling technique used to reach a conclusion about the total dollar amount of misstatement in an account balance.

Re-performance involves the auditor re-performing the control to test its effectiveness.

Tests of controls do NOT include which of the following auditing techniques?