Exam 5: Audit evidence

When making decisions about evidence for a given audit, the auditor's goal is to obtain a sufficient amount of timely, reliable evidence that is relevant to the information being verified, and to do so:

(Multiple Choice)

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Question 81

An example of an internal document is a:

(Multiple Choice)

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Question 82

Unusual fluctuations occur when:

(Multiple Choice)

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Question 83

Comparing the quantity of inventory on perpetual inventory records against the quantity from the inventory count is a balance-related audit objective.

(True/False)

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Question 84

Which of the following is NOT one of the major types of analytical procedures? Compare the client with the

(Multiple Choice)

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Question 85

Match the definitions provided below with the correct term:

detailed instructions for the collection of a type of audit evidence

audit procedures

use of comparisons and relationships to assess the reasonableness of account balances

budgets

written records of the client's expectations for the period

audit programs

Correct Answer:

Verified

detailed instructions for the collection of a type of audit evidence

use of comparisons and relationships to assess the reasonableness of account balances

written records of the client's expectations for the period

the degree to which the auditor is convinced that the evidence supports the audit opinion

list of audit procedures for the collection of evidence

(Matching)

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Question 86

Analytical procedures done in the planning phase typically use data aggregated at a high level.

(True/False)

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Question 87

The following question is based on the Appendix.Financial ratios can be categorised as measures of the client's ∙ short-term debt-paying ability ∙ liquidity activity ∙ ability to meet long-term debt obligations ∙ profitability ratios. Identify one financial ratio for each of the four categories above.State the ratio's name, its numerator and its denominator.

(Essay)

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Question 88

Which of the following is NOT audit evidence?

(Multiple Choice)

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Question 89

Which type of audit evidence can the auditor use in support of the 'accuracy of accounts receivable' audit objective?

(Multiple Choice)

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Question 90

Comparing the client's data with industry averages provides:

(Multiple Choice)

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Question 91

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

(Multiple Choice)

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Question 92

When the current year's unaudited trial balance is compared to the prior year's audited trial balance, what becomes apparent?

(Multiple Choice)

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Question 93

The most important difference between the 'quick' and 'current' ratios in assessing an entity's short-term debt-paying ability is the inclusion of:

(Multiple Choice)

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Question 94

Appropriateness of audit evidence can be improved by selecting a larger sample size or different population items.

(True/False)

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Question 95

Confirmations are not ordinarily used to verify individual transactions such as sales.

(True/False)

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Question 96

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

(Multiple Choice)

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Question 97

An auditor would be LEAST likely to use confirmations in connection with the examination of:

(Multiple Choice)

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Question 98

Which one of the following forms of evidence would be LEAST persuasive in forming the auditor's opinion?

(Multiple Choice)

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Question 99

Physical examination is usually more costly than observation.

(True/False)

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Question 100

Showing 81 - 100 of 118

When making decisions about evidence for a given audit, the auditor's goal is to obtain a sufficient amount of timely, reliable evidence that is relevant to the information being verified, and to do so:

An example of an internal document is a:

Unusual fluctuations occur when:

Comparing the quantity of inventory on perpetual inventory records against the quantity from the inventory count is a balance-related audit objective.

Which of the following is NOT one of the major types of analytical procedures? Compare the client with the

Analytical procedures done in the planning phase typically use data aggregated at a high level.

Which of the following is NOT audit evidence?

Which type of audit evidence can the auditor use in support of the 'accuracy of accounts receivable' audit objective?

Comparing the client's data with industry averages provides:

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

When the current year's unaudited trial balance is compared to the prior year's audited trial balance, what becomes apparent?

The most important difference between the 'quick' and 'current' ratios in assessing an entity's short-term debt-paying ability is the inclusion of:

Appropriateness of audit evidence can be improved by selecting a larger sample size or different population items.

Confirmations are not ordinarily used to verify individual transactions such as sales.

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

An auditor would be LEAST likely to use confirmations in connection with the examination of:

Which one of the following forms of evidence would be LEAST persuasive in forming the auditor's opinion?

Physical examination is usually more costly than observation.

Demand for audit and assurance services

Auditors’ legal environment

Audit quality and ethics

Audit responsibilities and objectives

Audit planning and documentation

Materiality and risk

Internal control and control risk

Fraud auditing

The impact of information technology on the audit process

Overall audit plan and audit program

Audit of the sales and collection cycle: Tests of controls and substantive tests of transactions

Completing tests in the sales and collection cycle: Accounts receivable

Audit sampling

Audit of transaction cycles and financial statement balances I

Audit of transaction cycles and financial statement balances II

Completing the audit

Audit reporting

Other auditing and assurance engagements

Filters