Question 1

Those procedures specifically outlined in an audit program are primarily designed to

Accepted Answer

A) prevent litigation. 
B) detect errors or irregularities. 
C) test internal controls. 
D) collect evidence. 
A) prevent litigation. 
B) detect errors or irregularities. 
C) test internal controls. 
D) collect evidence.

Question 2

The audit evidence gathering technique of recalculation refers to

Accepted Answer

A) sending bank confirmation to validate bank balances. 
B) rechecking prices as per price list. 
C) counting inventory. 
D) checking the calculation of amortization expense. 
A) sending bank confirmation to validate bank balances. 
B) rechecking prices as per price list. 
C) counting inventory. 
D) checking the calculation of amortization expense.

Question 3

Audit evidence can come in different forms with different degrees of persuasiveness.Which of the following is the least persuasive type of evidence?

Accepted Answer

A) bank statement obtained from the client 
B) computations made by the auditor 
C) prenumbered client sales invoices 
D) a vendor's invoice 
A) bank statement obtained from the client 
B) computations made by the auditor 
C) prenumbered client sales invoices 
D) a vendor's invoice

Question 4

An example of an external document is

Accepted Answer

A) a cancelled cheque. 
B) employees' time reports. 
C) inventory receiving reports. 
D) the minutes of the board of directors' meetings. 
A) a cancelled cheque. 
B) employees' time reports. 
C) inventory receiving reports. 
D) the minutes of the board of directors' meetings.

Question 5

Evidence is usually more persuasive for balance sheet accounts when it is obtained

Accepted Answer

A) from various time periods throughout the client's year. 
B) only from transactions occurring on the balance sheet date. 
C) as close to the balance sheet date as possible. 
D) from the time period when transactions in that account were most numerous during the fiscal period. 
A) from various time periods throughout the client's year. 
B) only from transactions occurring on the balance sheet date. 
C) as close to the balance sheet date as possible. 
D) from the time period when transactions in that account were most numerous during the fiscal period.

Question 6

Which of the following is the best example of objective evidence?

Accepted Answer

A) a letter written by a client's lawyer discussing the likely outcome of outstanding lawsuits 
B) the physical count of securities and cash by the auditor 
C) inquiries of the credit manager about the collectability of noncurrent accounts receivable 
D) observation of cobwebs on some inventory bins 
A) a letter written by a client's lawyer discussing the likely outcome of outstanding lawsuits 
B) the physical count of securities and cash by the auditor 
C) inquiries of the credit manager about the collectability of noncurrent accounts receivable 
D) observation of cobwebs on some inventory bins

Question 7

Observation is an important audit technique where the auditor can use sight,hearing,touch,and smell.Observation needs to be used together with other audit techniques because

Accepted Answer

A) employees will often perform their procedures consistently over time. 
B) it is a high-cost technique that is rarely used by auditors. 
C) it is a point-in-time technique limited to the time of the observation. 
D) auditors may not accurately observe and interpret what is happening. 
A) employees will often perform their procedures consistently over time. 
B) it is a high-cost technique that is rarely used by auditors. 
C) it is a point-in-time technique limited to the time of the observation. 
D) auditors may not accurately observe and interpret what is happening.

Question 8

List the various judgments and conclusions that auditors make with the help of evidence gathered in all phases of the audit process.-to accept (or continue with)the client.
-to plan the audit.
-to decide where there could be a risk of material misstatement in the financial statements.
-to develop an appropriate risk response.
-to conclude on the type of audit report to be issued.

Accepted Answer

Judgments and conclusions that

Question 9

The audit of Simcoe Transports Inc.was completed three months ago,so the PA firm proceeded to the file archive stage in accordance with Canadian Audit Standards.If the audit firm receives additional information related to the audit but the information does not affect the audit conclusions,the information should be

Accepted Answer

A) disregarded,as the file archive was already done. 
B) added to the audit file in the section to which it pertains. 
C) separately identified and added at the front of the audit file. 
D) added to the audit file with a request that the reviewing partner review the new information. 
A) disregarded,as the file archive was already done. 
B) added to the audit file in the section to which it pertains. 
C) separately identified and added at the front of the audit file. 
D) added to the audit file with a request that the reviewing partner review the new information.

Question 10

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

Accepted Answer

The factors that would lead the auditors

Question 11

A)Distinguish between internal documentation and external documentation as types of audit evidence.Give two examples of each.Which type is considered more reliable? B)Below are 10 documents typically examined by auditors.Classify each document as either internal or external.

Accepted Answer

A)Internal documentation involves the au

Question 12

Most auditors prefer to replace external confirmation with analytical procedures whenever possible because the

Accepted Answer

A) analytical procedures are more reliable. 
B) external confirmations are more expensive. 
C) analytical procedures are more persuasive. 
D) tests of details are more difficult to interpret. 
A) analytical procedures are more reliable. 
B) external confirmations are more expensive. 
C) analytical procedures are more persuasive. 
D) tests of details are more difficult to interpret.

Question 13

Renaldo compared shipping reports to sales documents,checking to see that the sales invoice dates matched the shipping dates,and that quantities invoiced matched quantities shipped.On his working paper,he said that he vouched invoices.What else should his working paper include with respect to the audit procedure conducted?

Accepted Answer

A) details of tests conducted,with results 
B) results of analytical review procedures on the aging of accounts receivable 
C) employee numbers and wage rates of the employees he spoke to 
D) a statement that the information will be held confidential 
A) details of tests conducted,with results 
B) results of analytical review procedures on the aging of accounts receivable 
C) employee numbers and wage rates of the employees he spoke to 
D) a statement that the information will be held confidential

Question 14

List and explain the three times during an audit engagement the auditor performs analytical procedures.

Accepted Answer

The three times during an audit engageme

Question 15

An example of vouching would be to trace from

Accepted Answer

A) receiving reports to the acquisitions journal. 
B) the acquisitions journal to supporting vendor invoices. 
C) duplicate bank deposit slips to the cash receipts journal. 
D) cancelled cheques to the cash disbursement journal. 
A) receiving reports to the acquisitions journal. 
B) the acquisitions journal to supporting vendor invoices. 
C) duplicate bank deposit slips to the cash receipts journal. 
D) cancelled cheques to the cash disbursement journal.

Question 16

In determining the quantity and quality of evidence to gather,the auditor will be satisfied when the evidence is

Accepted Answer

A) irrefutable. 
B) conclusive. 
C) highly persuasive. 
D) sufficiently convincing. 
A) irrefutable. 
B) conclusive. 
C) highly persuasive. 
D) sufficiently convincing.

Question 17

A)There are four important purposes of analytical procedures.Identify each of these four purposes and for each purpose give a specific example of an analytical procedure that an auditor might perform.B)Identify each of the five major types of analytical procedures and give an example of each.C)One purpose of performing analytical procedures in the planning phase of an audit is to assess the client's financial condition.Explain how the assessment of a client's financial condition can affect the auditor's decisions concerning evidence accumulation in later phases of the audit.

Accepted Answer

A)Four important purposes of analytical

Question 18

An example of an internal document is

Accepted Answer

A) a cancelled cheque. 
B) a bank statement. 
C) a bill of lading for purchases. 
D) employees' time reports. 
A) a cancelled cheque. 
B) a bank statement. 
C) a bill of lading for purchases. 
D) employees' time reports.

Question 19

Audit evidence is generally considered sufficient when

Accepted Answer

A) it is appropriate. 
B) there is enough of it to afford a reasonable basis for an opinion on financial statements. 
C) it has the qualities of being relevant,objective,and free from known bias. 
D) it has been obtained by random selection. 
A) it is appropriate. 
B) there is enough of it to afford a reasonable basis for an opinion on financial statements. 
C) it has the qualities of being relevant,objective,and free from known bias. 
D) it has been obtained by random selection.

Question 20

An example of a document that the auditor receives from the client,but which was prepared by someone outside the client's organization,is a(n)

Accepted Answer

A) external confirmation. 
B) copy of sales invoice. 
C) copy of a bank note payable. 
D) inventory receiving report. 
A) external confirmation. 
B) copy of sales invoice. 
C) copy of a bank note payable. 
D) inventory receiving report.

Those procedures specifically outlined in an audit program are primarily designed to

The audit evidence gathering technique of recalculation refers to

Audit evidence can come in different forms with different degrees of persuasiveness.Which of the following is the least persuasive type of evidence?

An example of an external document is

Evidence is usually more persuasive for balance sheet accounts when it is obtained

Which of the following is the best example of objective evidence?

Observation is an important audit technique where the auditor can use sight,hearing,touch,and smell.Observation needs to be used together with other audit techniques because

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

A)Distinguish between internal documentation and external documentation as types of audit evidence.Give two examples of each.Which type is considered more reliable? B)Below are 10 documents typically examined by auditors.Classify each document as either internal or external.

Most auditors prefer to replace external confirmation with analytical procedures whenever possible because the

List and explain the three times during an audit engagement the auditor performs analytical procedures.

An example of vouching would be to trace from

In determining the quantity and quality of evidence to gather,the auditor will be satisfied when the evidence is

An example of an internal document is

Audit evidence is generally considered sufficient when

An example of a document that the auditor receives from the client,but which was prepared by someone outside the client's organization,is a(n)

The Demand for Audit and Other Assurance Services

The Public Accounting Profession and Audit Quality

Professional Ethics and Legal Liability

Audit Responsibilities and Objectives

Client Acceptance,Planning,and Materiality

Assessing the Risk of Material Misstatement

Internal Control and COSO Framework

Assessing Control Risk and Designing Test of Controls

Develop Risk Response: Audit Strategy and Audit Program

Audit Sampling Concepts

Audit of the Revenue Cycle

Audit of the Acquisition and Payment Cycle

Audit of the Inventory and Distribution Cycle

Audit of the Human Resources and Payroll Cycle

Audit of the Capital Acquisition and Repayment Cycle

Audit of Cash Balances

Completing the Audit

Audit Reports on Financial Statements

Other Assurance and Nonassurance Services

Filters

Exam 5: Audit Evidence

Those procedures specifically outlined in an audit program are primarily designed to

The audit evidence gathering technique of recalculation refers to

Audit evidence can come in different forms with different degrees of persuasiveness.Which of the following is the least persuasive type of evidence?

An example of an external document is

Evidence is usually more persuasive for balance sheet accounts when it is obtained

Which of the following is the best example of objective evidence?

Observation is an important audit technique where the auditor can use sight,hearing,touch,and smell.Observation needs to be used together with other audit techniques because

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

A)Distinguish between internal documentation and external documentation as types of audit evidence.Give two examples of each.Which type is considered more reliable? B)Below are 10 documents typically examined by auditors.Classify each document as either internal or external.

Most auditors prefer to replace external confirmation with analytical procedures whenever possible because the

List and explain the three times during an audit engagement the auditor performs analytical procedures.

An example of vouching would be to trace from

In determining the quantity and quality of evidence to gather,the auditor will be satisfied when the evidence is

An example of an internal document is

Audit evidence is generally considered sufficient when

An example of a document that the auditor receives from the client,but which was prepared by someone outside the client's organization,is a(n)

The Demand for Audit and Other Assurance Services

The Public Accounting Profession and Audit Quality

Professional Ethics and Legal Liability

Audit Responsibilities and Objectives

Client Acceptance,Planning,and Materiality

Assessing the Risk of Material Misstatement

Internal Control and COSO Framework

Assessing Control Risk and Designing Test of Controls

Develop Risk Response: Audit Strategy and Audit Program

Audit Sampling Concepts

Audit of the Revenue Cycle

Audit of the Acquisition and Payment Cycle

Audit of the Inventory and Distribution Cycle

Audit of the Human Resources and Payroll Cycle

Audit of the Capital Acquisition and Repayment Cycle

Audit of Cash Balances

Completing the Audit

Audit Reports on Financial Statements

Other Assurance and Nonassurance Services

Filters