Exam 9: Audit Evidence

An important benefit of industry comparisons is as

The new Canadian Auditing Standards require the auditor to complete the audit working papers within how many days of the audit report date?

An example of vouching would be to trace from

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)?

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. B) Below are 10 documents typically examined by auditors. Classify each document as either internal or external.

For income statement accounts, evidence is more persuasive if there is a sample from

The PA is having a discussion with his client about the outcome of several lawsuits that are presently in progress. The client has requested that the comments during the discussion be removed from the audit file. The client would like the only documentation in the audit file to be the legal letter from the client and brief comments regarding the auditor's judgments with respect to the quality of disclosure in the financial statements. The client is concerned that

When the auditor examines the client's documents and records to support recorded transactions or amounts, it is commonly referred to as

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?

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

For each of the following audit procedures, state and describe the type of audit evidence, state the audit assertion that it applies to, and describe the reliability of the evidence (with reasons). A) Watch staff scan products and enter cash received. B) Reconcile daily cash drawer receipts (cash, debit card sales, credit card sales) with daily sales for one week. C) Calculate daily gross profit and gross profit by product line. D) Account for a sequence of sales documents.

CAS 330, the auditor's response to assessed risks, explains that the auditor needs to link completed audit work to the assessed risks at the assertion level and

Audit evidence is generally considered sufficient when

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?

Each working paper should include enough information to fulfill the objectives for which it was designed. For example, if a working paper is designed to list the detail and show the verification of support of a balance sheet account such as prepaid insurance, it is essential that the detail on the working paper

At the first day of work at a PA firm, staff are given their own laptop computer for use in working with clients and other data. Required: A) What is the typical structure of client working paper files? B) How is client data protected from unauthorized change?

"The detailed instructions for the entire collection of evidence for an audit area" is the definition of a(n)

With the use of electronic working papers, each team member should have a unique access identification code and a password to access the working papers. Once a working paper is completed, what type of access should the staff auditor who prepared the working paper file have?

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

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.