A) are kept by the client for easy reference for their accounting staff. B) should be considered as a substitute for the clients accounting records. C) are designed to facilitate the review and supervision of the work performed by the audit team by a reviewing partner. D) prepared during the engagement are the property of the client once the audit bill is paid. A) are kept by the client for easy reference for their accounting staff. B) should be considered as a substitute for the clients accounting records. C) are designed to facilitate the review and supervision of the work performed by the audit team by a reviewing partner. D) prepared during the engagement are the property of the client once the audit bill is paid.

Exam 7: Nature and Type of Audit Evidence

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Why is the appropriateness of audit evidence obtained by the auditor important in forming an audit opinion? Describe the qualities information should have to be considered appropriate by the auditor.

(Essay)

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Question 21

The SEC requires the auditors of public companies to retain e-mail correspondence related to the audit.

(True/False)

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Question 22

Audit documents:

(Multiple Choice)

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Question 23

Due professional care,the third general standard,is concerned with what is done by the independent auditor and how well it is done.For example,due care in the matter of audit documentation requires that audit documentation of the evidence gathered by the auditor meets which of the following criteria?

(Multiple Choice)

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Question 24

Inquiries of clients and recalculations normally have a low cost associated with them.

(True/False)

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Question 25

Which of the following statements is correct regarding the costs involved in obtaining evidence?

(Multiple Choice)

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Question 26

"Physical examination" is the inspection or count by the auditor of items such as:

(Multiple Choice)

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Question 27

The auditor must gather sufficient and appropriate evidence during the course of the audit.Sufficient evidence must:

(Multiple Choice)

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Question 28

Which items affect the sufficiency of evidence when choosing a sample?

(Multiple Choice)

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Question 29

Which of the following statements is most correct regarding the primary purpose of audit procedures?

(Multiple Choice)

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Question 30

________ is the auditor's examination of the client's documents and records to substantiate that the information is included in the financial statements.

(Multiple Choice)

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Question 31

When the auditor uses the audit procedure vouching she is primarily concerned with which of the following audit objectives when testing classes of transactions?

(Multiple Choice)

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Question 32

The two most important factors when determining the appropriate sample size in an audit are the auditor's expectation of misstatements and the objectivity of the evidence.

(True/False)

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Question 33

An example of an external document that provides reliable information for the auditor is:

(Multiple Choice)

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Question 34

The reliability of evidence refers to the degree to which evidence is considered believable or trustworthy.There are six factors that affect the reliability of audit evidence.One factor is the independence of the provider; i.e.,evidence obtained from a source outside the client company is more reliable than that obtained within.Identify and discuss any two of the remaining five factors:

(Essay)

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Question 35

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

(Multiple Choice)

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Question 36

There are four important purposes of analytical procedures.Identify three of these four purposes and,for each purpose,give a specific example of an analytical procedure that an auditor might perform.

(Essay)

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Question 37

Appropriateness of evidence is a measure of the:

(Multiple Choice)

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Question 38

Which of the following statements regarding the relevance of evidence is correct?

(Multiple Choice)

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Question 39

When using analytical procedures:

(Multiple Choice)

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Question 40

Showing 21 - 40 of 105

Exam 7: Nature and Type of Audit Evidence

Why is the appropriateness of audit evidence obtained by the auditor important in forming an audit opinion? Describe the qualities information should have to be considered appropriate by the auditor.

The SEC requires the auditors of public companies to retain e-mail correspondence related to the audit.

Audit documents:

Inquiries of clients and recalculations normally have a low cost associated with them.

Which of the following statements is correct regarding the costs involved in obtaining evidence?

"Physical examination" is the inspection or count by the auditor of items such as:

The auditor must gather sufficient and appropriate evidence during the course of the audit.Sufficient evidence must:

Which items affect the sufficiency of evidence when choosing a sample?

Which of the following statements is most correct regarding the primary purpose of audit procedures?

________ is the auditor's examination of the client's documents and records to substantiate that the information is included in the financial statements.

When the auditor uses the audit procedure vouching she is primarily concerned with which of the following audit objectives when testing classes of transactions?

The two most important factors when determining the appropriate sample size in an audit are the auditor's expectation of misstatements and the objectivity of the evidence.

An example of an external document that provides reliable information for the auditor is:

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

There are four important purposes of analytical procedures.Identify three of these four purposes and,for each purpose,give a specific example of an analytical procedure that an auditor might perform.

Appropriateness of evidence is a measure of the:

Which of the following statements regarding the relevance of evidence is correct?

When using analytical procedures:

The Assurance Services Market

The Audit Standards Setting Process

Audit Reports

Legal Liability Considerations for Auditors

Ethics and the Audit Profession

Audit Responsibilities and Objectives

Audit Planning

Considering Materiality and Audit Risk

Considering Internal Control

Considering the Risk of Fraud

Implications of Information Technology for the Audit Process

Developing the Overall Audit Plan 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 Inventory and Warehousing Cycle

Audit of the Payroll and Personnel Cycle

Audit of the Capital Acquisition and Repayment Cycle

Audit of Cash and Financial Instruments

Audit Completion

Other Assurance Services

Internal and Governmental Financial Auditing and Operational Auditing

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