Exam 5: Audit Evidence and Documentation

In obtaining sufficient appropriate audit evidence,the work of which type or types of specialists may be relied upon? Client Engaged Auditor Engaged A) Yes Yes B) Yes No C) No Yes D) No No

The following is an audit working paper prepared by an assistant on the Williams audit: f Column footed. √ Amount agrees to amount recorded as a deposit on the bank statement and description agrees with receipt enclosed with 12/31/0X bank statement.This note is the Wilde note receivable that was recorded as a receipt by the client in the cash receipts journal on 1/3/0X.The receivable was appropriately credited and properly reflected in the January cash receipts journal.No adjustment needed as bank and books simply record this in different periods. Г Agreed to 12/31/0X bank statement. ♥ Agreed to general ledger. A - 1 Required: Prepare a list of review points as the preparer of this working.You may assume that any other working papers referred to are appropriate.You will receive credit for proper points you bring up and lose credit for improper ones and omissions.

Which of the following is not considered to be an analytical procedure?

What type of transactions ordinarily have high inherent risk because they involve management judgments or assumptions in formulating accounting balances?

When considering the use of management's written representations as audit evidence about the completeness assertion,an auditor should understand that such representations:

The most reliable form of documentary evidence generally is considered to be documents created by the client.

The date of the management representation letter should coincide with the:

Which of the following is true about analytical procedures?

Which of the following statements is generally correct about audit evidence?

Although the quantity,type,and content of working papers will vary with the circumstances,the working papers generally would include the:

Which of the following statements relating to audit evidence is the most accurate statement?

Analytical procedures are required at the risk assessment stage and as:

The auditors use analytical procedures during the course of an audit.The most important phase of performing these procedures is the:

The components of the risk of misstatement are: Inherent Risk Control Risk Detection Risk A) Yes Yes Yes B) Yes Yes No C) Yes No No D) No Yes Yes

Working papers that record the procedures used by the auditor to gather evidence should be:

Which of the following is not a function of working papers?

Which of the following is not a primary purpose of audit working papers?

Confirmation would be most effective in addressing the existence assertion for the:

Which of the following is not an assertion relating to classes of transactions?

The use of lead schedules is designed to increase the detail of the working trial balance.