Question 1

Tracing is a process that helps establish that recorded transactions are valid.

Accepted Answer

A) True 
 B)False

Question 2

Internal documentation is generally less reliable than external documentation.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following is not a factor that would impact the effectiveness of a substantive analytical procedure?

Accepted Answer

A) Nature of the assertion being tested. 
B) Plausibility and predictability of the relationships in the data. 
C) Excessive disaggregation of the relevant data. 
D) Rigor of the analytical procedure employed. 
A) Nature of the assertion being tested. 
B) Plausibility and predictability of the relationships in the data. 
C) Excessive disaggregation of the relevant data. 
D) Rigor of the analytical procedure employed.

Question 4

To be considered reliable evidence,confirmations must be controlled by which of the following parties?

Accepted Answer

A) A client employee responsible for accounts receivable. 
B) An external auditor. 
C) A client's internal audit department. 
D) A client's controller or CFO. 
A) A client employee responsible for accounts receivable. 
B) An external auditor. 
C) A client's internal audit department. 
D) A client's controller or CFO.

Question 5

The reliability of audit evidence relates to the connection between the audit procedure being performed and the assertion being audited.

Accepted Answer

A) True 
 B)False

Question 6

Internal and external documentation Distinguish between internal documentation and external documentation as types of audit evidence.Give two examples of each.Which type is considered more reliable?

Accepted Answer

Internal documentation involves the audi

Question 7

The direction of testing from recorded amounts toward supporting documentation provides evidence as to existence of assets and revenues.

Accepted Answer

A) True 
 B)False

Question 8

The relevance of audit evidence depends on the audit assertion being tested.

Accepted Answer

A) True 
 B)False

Question 9

Appropriateness 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.

Accepted Answer

Appropriateness is a measure of the qual

Question 10

Audit documentation should contain which of the following?

Accepted Answer

A) A heading that includes the name of the audit client,an explanatory title,and the balance sheet date. 
B) The initials or electronic signature of the auditor performing the audit test and the date the test was completed. 
C) The initials or electronic signature of the manager or partner who reviewed the documentation and the date the review was completed. 
D) All of the above. 
A) A heading that includes the name of the audit client,an explanatory title,and the balance sheet date. 
B) The initials or electronic signature of the auditor performing the audit test and the date the test was completed. 
C) The initials or electronic signature of the manager or partner who reviewed the documentation and the date the review was completed. 
D) All of the above.

Question 11

Which of the following is not a type of internal documentation?

Accepted Answer

A) Legal documents. 
B) Business documents. 
C) Third-party documents. 
D) Accounting documents. 
A) Legal documents. 
B) Business documents. 
C) Third-party documents. 
D) Accounting documents.

Question 12

Which of the following types of audit evidence is the least reliable?

Accepted Answer

A) Evidence from the client's organization. 
B) Evidence derived from a well-controlled system. 
C) Evidence from independent outside sources. 
D) Original documents. 
A) Evidence from the client's organization. 
B) Evidence derived from a well-controlled system. 
C) Evidence from independent outside sources. 
D) Original documents.

Question 13

In evaluating cost of evidence,which of the following evidence qualities of the audit usually has the lowest cost?

Accepted Answer

A) High quality. 
B) Medium quality. 
C) Low quality. 
D) All cost the same. 
A) High quality. 
B) Medium quality. 
C) Low quality. 
D) All cost the same.

Question 14

Conclusions are typically documented by auditors in which type of work paper?

Accepted Answer

A) Audit planning memo. 
B) Audit program. 
C) Audit memoranda. 
D) Representation letter. 
A) Audit planning memo. 
B) Audit program. 
C) Audit memoranda. 
D) Representation letter.

Question 15

The process of vouching helps establish which of the following regarding recorded transactions?

Accepted Answer

A) Transactions have been recorded. 
B) Transactions are complete. 
C) Transactions are valid. 
D) Transactions are presented properly. 
A) Transactions have been recorded. 
B) Transactions are complete. 
C) Transactions are valid. 
D) Transactions are presented properly.

Question 16

Auditors should mail third-party confirmations through the client's mailroom.

Accepted Answer

A) True 
 B)False

Question 17

Audit documentation should include the initials or electronic signature in order to identify the audit personnel responsible for the work and the managers and partners reviewing the work.

Accepted Answer

A) True 
 B)False

Question 18

The audit program specifies what the client must do to perform the audit in accordance with generally accepted accounting procedures.

Accepted Answer

A) True 
 B)False

Question 19

Which one of the following would be considered the most reliable type of audit evidence?

Accepted Answer

A) Purchase orders from vendors. 
B) Customer accounts receivable files. 
C) Computerized general ledger. 
D) Confirmations from banks. 
A) Purchase orders from vendors. 
B) Customer accounts receivable files. 
C) Computerized general ledger. 
D) Confirmations from banks.

Question 20

The extent of procedures is affected mostly by which of the following factors?

Accepted Answer

A) The sheer volume of procedures to be applied by the auditor. 
B) The time of year in which the client takes a physical inventory in the warehouse. 
C) The auditor's judgment that misstatements are probable in certain balances. 
D) The availability of the client's staff at or near the balance sheet date. 
A) The sheer volume of procedures to be applied by the auditor. 
B) The time of year in which the client takes a physical inventory in the warehouse. 
C) The auditor's judgment that misstatements are probable in certain balances. 
D) The availability of the client's staff at or near the balance sheet date.

Tracing is a process that helps establish that recorded transactions are valid.

Internal documentation is generally less reliable than external documentation.

Which of the following is not a factor that would impact the effectiveness of a substantive analytical procedure?

To be considered reliable evidence,confirmations must be controlled by which of the following parties?

The reliability of audit evidence relates to the connection between the audit procedure being performed and the assertion being audited.

Internal and external documentation Distinguish between internal documentation and external documentation as types of audit evidence.Give two examples of each.Which type is considered more reliable?

The direction of testing from recorded amounts toward supporting documentation provides evidence as to existence of assets and revenues.

The relevance of audit evidence depends on the audit assertion being tested.

Appropriateness 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.

Audit documentation should contain which of the following?

Which of the following is not a type of internal documentation?

Which of the following types of audit evidence is the least reliable?

In evaluating cost of evidence,which of the following evidence qualities of the audit usually has the lowest cost?

Conclusions are typically documented by auditors in which type of work paper?

The process of vouching helps establish which of the following regarding recorded transactions?

Auditors should mail third-party confirmations through the client's mailroom.

Audit documentation should include the initials or electronic signature in order to identify the audit personnel responsible for the work and the managers and partners reviewing the work.

The audit program specifies what the client must do to perform the audit in accordance with generally accepted accounting procedures.

Which one of the following would be considered the most reliable type of audit evidence?

The extent of procedures is affected mostly by which of the following factors?

Quality Auditing: Why It Matters

The Auditors Responsibilities Regarding Fraud and Mechanisms to Address Fraud: Regulation and Corporate Governance

Internal Control Over Financial Reporting: Responsibilities of Management and the External Auditor

Professional Legal Liability

Professional Auditing Standards and the Audit Opinion Formulation Process

Planning the Audit: Identifying and Responding to the Risks of Material Misstatement

Specialized Audit Tools: Sampling and Generalized Audit Software

Auditing the Revenue Cycle

Auditing Cash and Marketable Securities

Auditing Inventory, Goods and Services, and Accounts Payable: the Acquisition and Payment Cycle

Auditing Long-Lived Assets: Acquisition, Use, Impairment, and Disposal

Auditing Long-Term Liabilities and Stockholders Equity Transactions

Completing a Quality Audit

Audit Reports

Filters

Exam 6: Audit Evidence

Tracing is a process that helps establish that recorded transactions are valid.

Internal documentation is generally less reliable than external documentation.

Which of the following is not a factor that would impact the effectiveness of a substantive analytical procedure?

To be considered reliable evidence,confirmations must be controlled by which of the following parties?

The reliability of audit evidence relates to the connection between the audit procedure being performed and the assertion being audited.

Internal and external documentation Distinguish between internal documentation and external documentation as types of audit evidence.Give two examples of each.Which type is considered more reliable?

The direction of testing from recorded amounts toward supporting documentation provides evidence as to existence of assets and revenues.

The relevance of audit evidence depends on the audit assertion being tested.

Appropriateness 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.

Audit documentation should contain which of the following?

Which of the following is not a type of internal documentation?

Which of the following types of audit evidence is the least reliable?

In evaluating cost of evidence,which of the following evidence qualities of the audit usually has the lowest cost?

Conclusions are typically documented by auditors in which type of work paper?

The process of vouching helps establish which of the following regarding recorded transactions?

Auditors should mail third-party confirmations through the client's mailroom.

Audit documentation should include the initials or electronic signature in order to identify the audit personnel responsible for the work and the managers and partners reviewing the work.

The audit program specifies what the client must do to perform the audit in accordance with generally accepted accounting procedures.

Which one of the following would be considered the most reliable type of audit evidence?

The extent of procedures is affected mostly by which of the following factors?

Quality Auditing: Why It Matters

The Auditors Responsibilities Regarding Fraud and Mechanisms to Address Fraud: Regulation and Corporate Governance

Internal Control Over Financial Reporting: Responsibilities of Management and the External Auditor

Professional Legal Liability

Professional Auditing Standards and the Audit Opinion Formulation Process

Planning the Audit: Identifying and Responding to the Risks of Material Misstatement

Specialized Audit Tools: Sampling and Generalized Audit Software

Auditing the Revenue Cycle

Auditing Cash and Marketable Securities

Auditing Inventory, Goods and Services, and Accounts Payable: the Acquisition and Payment Cycle

Auditing Long-Lived Assets: Acquisition, Use, Impairment, and Disposal

Auditing Long-Term Liabilities and Stockholders Equity Transactions

Completing a Quality Audit

Audit Reports

Filters