FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 7: A Framework for Audit Evidence

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 1

Multiple Choice

Review LaterAdd Note

Review Later

Which one of the following statements is false?

A) Auditing includes the process of gathering evidence to test assertions.
B) No general audit program suits the needs for all situations.
C) Even though all audits are different,they can all be approached in the same manner.
D) All audits involve testing management's assertions contained in written communications to another party and independently gathering evidence to test the relevant assertions.

E) A) and B)
F) A) and C)

Correct Answer

verified

Show Answer

Question 2

Multiple Choice

Review LaterAdd Note

Review Later

The auditor normally considers both underlying accounting data and corroborating information in the audit process.Underlying accounting data does not include which of the following items?

A) evidence of controls.
B) minutes of meetings.
C) checks,invoices,and contracts.
D) general and subsidiary ledger.

E) C) and D)
F) A) and D)

Correct Answer

verified

Show Answer

Question 3

Multiple Choice

Review LaterAdd Note

Which one of the following would be the most persuasive type of evidence?

Vouching recorded transactions involves taking a sample from the journal and tracing the items back to the source documents to ensure the transactions occurred.

An example of physical examination is the auditor's testing of inventory by counting it to substantiate the existence assertion.

Which of the following is not an estimate that requires significant auditor judgment and skepticism?

Which of the following types of audit evidence is the least reliable?

Which of the following provides the primary support of an audit?

The quality of electronic evidence depends on the controls built into the information system.

Proper audit documentation Audit documentation serves as the primary support of an audit.Give at least six examples of the components of proper working paper documentation.

Based upon the risk of misstatement,the auditor uses judgment to determine which balances and transactions should be tested in the financial statements.

Which of the following assertions is the primary assertion that is satisfied by physically observing the client's count of inventory?

Recent regulation requires that audit documentation be retained for at least seven years.

Audit assertions and objectives - accounts receivable Based on management assertions implicit in the accounts receivable account,explain the audit objectives for the accounts receivable and related balances.

For the financial statements to be presented in accordance with generally accepted accounting principles,the information included must:

Reprocessing of transactions involves which of the following?

Audit procedures Businesses often have litigation against them that the auditor has to identify and adequately disclose.List the financial assertions that apply to Contingencies.For each assertion indicate two or three audit procedures that would address that assertion. Organize you answer as follows:

Inquiries of client personnel are not an effective means of evidence gathering by an auditor.

Audit program Discuss the purpose of the audit program and its importance to the auditor.

An advantage of directional testing is that it is more efficient by providing evidence on complementary sets of accounts.