Question 1

Which of the following statements is not correct?

Accepted Answer

A) It is possible to vary the sample size from one unit to 100% of the items in the population. 
B) The decision of how many items to test should not be influenced by the increased costs of performing the additional tests. 
C) The decision of how many items to test must be made by the auditor for each audit procedure. 
D) The sample size for any given procedure is likely to vary from audit to audit. 
A) It is possible to vary the sample size from one unit to 100% of the items in the population. 
B) The decision of how many items to test should not be influenced by the increased costs of performing the additional tests. 
C) The decision of how many items to test must be made by the auditor for each audit procedure. 
D) The sample size for any given procedure is likely to vary from audit to audit.

Question 2

Audit evidence obtained directly by the auditor will not be reliable if:

Accepted Answer

A) the auditor lacks the competence to evaluate the evidence. 
B) it is provided by the client's attorney. 
C) the client denies its veracity. 
D) it is impossible for the auditor to obtain additional corroboratory evidence. 
A) the auditor lacks the competence to evaluate the evidence. 
B) it is provided by the client's attorney. 
C) the client denies its veracity. 
D) it is impossible for the auditor to obtain additional corroboratory evidence.

Question 3

Auditors use evidence to help them draw conclusions.

Accepted Answer

A) True 
 B)False

Question 4

A canceled check written by the client, made payable to a local supplier and drawn on the client's bank account is one type of internal document.

Accepted Answer

A) True 
 B)False

Question 5

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

Accepted Answer

A) confirmation. 
B) sales invoice. 
C) vendor invoice. 
D) bank reconciliation. 
A) confirmation. 
B) sales invoice. 
C) vendor invoice. 
D) bank reconciliation.

Which of the following statements is not correct?

Audit evidence obtained directly by the auditor will not be reliable if:

Auditors use evidence to help them draw conclusions.

A canceled check written by the client, made payable to a local supplier and drawn on the client's bank account is one type of internal document.

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

The Demand for Audit and Other Assurance Services

The Cpa Profession

Audit Reports

Professional Ethics

Legal Liability

Audit Responsibilities and Objectives

Audit Planning and Analytical Procedures

Materiality and Risk

Internal Control, Control Risk, and Section 404 Audits

Fraud Auditing

The Impact of Information Technology on the Audit Process

Overall Audit Strategy and Audit Program

Audit of the Sales and Collection Cycle: Tests of Controls and Substantive Tests of Transactions

Audit Sampling for Tests of Controls and Substantive Tests of Transactions

Completing the Tests in the Sales and Collection Cycle: Accounts Receivable

Audit Sampling for Tests of Details of Balances

Audit of the Acquisition and Payment Cycle: Tests of Controls, Substantive Tests of Transactions, and Accounts Payable

Completing the Tests in the Acquisition and Payment Cycle: Verification of Selected Accounts

Audit of the Payroll and Personnel Cycle

Audit of the Inventory and Warehousing Cycle

Audit of the Capital Acquisition and Repayment Cycle

Audit of Cash and Financial Instruments

Completing the Audit

Other Assurance Services

Internal and Governmental Financial Auditing and Operational Auditing

Filters

Exam 7: Audit Evidence

Which of the following statements is not correct?

Audit evidence obtained directly by the auditor will not be reliable if:

Auditors use evidence to help them draw conclusions.

A canceled check written by the client, made payable to a local supplier and drawn on the client's bank account is one type of internal document.

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

The Demand for Audit and Other Assurance Services

The Cpa Profession

Audit Reports

Professional Ethics

Legal Liability

Audit Responsibilities and Objectives

Audit Planning and Analytical Procedures

Materiality and Risk

Internal Control, Control Risk, and Section 404 Audits

Fraud Auditing

The Impact of Information Technology on the Audit Process

Overall Audit Strategy and Audit Program

Audit of the Sales and Collection Cycle: Tests of Controls and Substantive Tests of Transactions

Audit Sampling for Tests of Controls and Substantive Tests of Transactions

Completing the Tests in the Sales and Collection Cycle: Accounts Receivable

Audit Sampling for Tests of Details of Balances

Audit of the Acquisition and Payment Cycle: Tests of Controls, Substantive Tests of Transactions, and Accounts Payable

Completing the Tests in the Acquisition and Payment Cycle: Verification of Selected Accounts

Audit of the Payroll and Personnel Cycle

Audit of the Inventory and Warehousing Cycle

Audit of the Capital Acquisition and Repayment Cycle

Audit of Cash and Financial Instruments

Completing the Audit

Other Assurance Services

Internal and Governmental Financial Auditing and Operational Auditing

Filters