Exam 5: Audit Evidence

Which of the following audit techniques would the auditor use to test the completeness of sales (i.e. ,test whether shipments have been billed to customers)?

Below are 12 audit procedures.Classify each procedure according to the following types of audit evidence: 1)inspection,2)external confirmation,3)recalculation,4)observation,5)inquiry of the client,6)reperformance,and 7)analytical procedure.

The working papers prepared during the engagement are the property of the

"Use of comparisons and relationships to determine whether account balances or other data appear reasonable" is a definition of

Confirmations from outside organizations such as banks and law firms are

Identify and define the seven methods of audit evidence collection.Which two types of evidence are the most expensive? Which three types of evidence are the least expensive? Which type of evidence would be most persuasive when testing the existence objective for long-term assets?

Last year,the client's internal controls were weak.This year,the internal controls are stronger.This means that information recorded on internal documentation is

Identify and explain the three determinants of the persuasiveness of evidence.

Identify the characteristics that working papers should have.For each characteristic,briefly explain why it is important.

Which of the following characteristics of samples would make the sample more sufficient?

List and describe the process of developing substantive analytical procedures as per CAS 520.

During final review of working papers and financial statements,possible oversights in the audit can be identified by

An auditor is conducting the audit of the financial statements of a retail department store.The auditor is aware that he must obtain sufficient appropriate evidence with respect to various audit assertions associated with management assertions and thus with material financial statement amounts. The following is a list of specific audit procedures the auditor plans to perform: 1.Send negative external confirmation requests to a large sample of the store's customers who have balances due on account at year end. 2.Perform test counts of goods on hand during the company's normal physical inventory taking,one month prior to the year end. 3.Examine receiving reports dated prior to the year end that have not been matched to vendor invoices. 4.Review paid invoices and supporting documents for amounts classified as repair and maintenance expense for large or unusual items. 5.Examine audited financial statements of several foreign companies in which the client owns shares,and which are being held as temporary investments. Required: For each of the five audit procedures listed,describe only the PRIMARY management assertion being tested,the PRIMARY audit assertion being tested,and the quality of evidence (high,medium,low)obtained,explaining WHY the evidence is the quality level you specify.

To improve the appropriateness of audit evidence,the auditor should

The working papers contain data useful for evaluating the adequacy of the audit scope and the fairness of the financial statements.These data help the auditor to conclude whether

Which one of the following forms of evidence would be least reliable?

Reperformance is often conducted using computer-assisted audit techniques.The most effective use of generalized audit software for reperformance would be to

Inspection of assets is not a sufficient form of evidence when the auditor wants to determine the

The auditor is tracing from the duplicate sales invoices to related shipping documents with respect to the occurrence transaction-related audit objective.This type of evidence is

Identify the factors that would potentially lead the auditors to obtain less audit evidence after the initial appropriate risk assessment procedures?