Question 1

Which of the following presumptions is correct about the reliability of audit evidence?

Accepted Answer

A) Information obtained indirectly from outside sources is the most reliable form of audit evidence. 
B) To be reliable,audit evidence should be convincing rather than persuasive. 
C) Reliability of audit evidence refers to the amount of corroborative evidence obtained. 
D) An effective system of internal control provides more assurance about the reliability of audit evidence. 
A) Information obtained indirectly from outside sources is the most reliable form of audit evidence. 
B) To be reliable,audit evidence should be convincing rather than persuasive. 
C) Reliability of audit evidence refers to the amount of corroborative evidence obtained. 
D) An effective system of internal control provides more assurance about the reliability of audit evidence.

Question 2

Which of the following presumptions does not relate to the reliability of audit evidence?

Accepted Answer

A) The more effective the client's internal control,the more assurance it provides about the accounting data and financial statements. 
B) The auditors' opinion,to be economically useful,is formed within reasonable time and based on evidence obtained at a reasonable cost. 
C) Evidence obtained from independent sources outside the entity is more reliable than evidence secured solely within the entity. 
D) The independent auditors' direct personal knowledge,obtained through observation and inspection,is of higher quality than information obtained indirectly. 
A) The more effective the client's internal control,the more assurance it provides about the accounting data and financial statements. 
B) The auditors' opinion,to be economically useful,is formed within reasonable time and based on evidence obtained at a reasonable cost. 
C) Evidence obtained from independent sources outside the entity is more reliable than evidence secured solely within the entity. 
D) The independent auditors' direct personal knowledge,obtained through observation and inspection,is of higher quality than information obtained indirectly.

Question 3

Which of the following is least related to the concept of independence in appearance?

Accepted Answer

A) The auditors' objectivity and ability to act impartially toward the client. 
B) The perceptions of individuals who rely on the financial statements and auditors' opinion on the financial statements. 
C) The ownership of a financial interest in a client by the auditor. 
D) The employment of the auditor's family member in an important position with the client. 
A) The auditors' objectivity and ability to act impartially toward the client. 
B) The perceptions of individuals who rely on the financial statements and auditors' opinion on the financial statements. 
C) The ownership of a financial interest in a client by the auditor. 
D) The employment of the auditor's family member in an important position with the client.

Which of the following presumptions is correct about the reliability of audit evidence?

Which of the following presumptions does not relate to the reliability of audit evidence?

Which of the following is least related to the concept of independence in appearance?

Auditing and Assurance Services

Engagement Planning

Management Fraud and Audit Risk

Risk Assessment: Internal Control Evaluation

Employee Fraud and the Audit of Cash

Revenue and Collection Cycle

Acquisition and Expenditure Cycle

Production Cycle

Finance and Investment Cycle

Completing the Audit

Reports on Audited Financial Statements

Other Public Accounting Services

Professional Ethics

Legal Liability

Internal Audits, Governmental Audits, and Fraud Examinations

Overview of Sampling

Attributes Sampling

Variables Sampling

Auditing and Information Technology

Filters

Exam 2: Professional Standards

Which of the following presumptions is correct about the reliability of audit evidence?

Which of the following presumptions does not relate to the reliability of audit evidence?

Which of the following is least related to the concept of independence in appearance?

Auditing and Assurance Services

Engagement Planning

Management Fraud and Audit Risk

Risk Assessment: Internal Control Evaluation

Employee Fraud and the Audit of Cash

Revenue and Collection Cycle

Acquisition and Expenditure Cycle

Production Cycle

Finance and Investment Cycle

Completing the Audit

Reports on Audited Financial Statements

Other Public Accounting Services

Professional Ethics

Legal Liability

Internal Audits, Governmental Audits, and Fraud Examinations

Overview of Sampling

Attributes Sampling

Variables Sampling

Auditing and Information Technology

Filters