Question 1

The auditor is the legal owner of the working papers related to an auditee's financial statements.

Accepted Answer

A) True 
 B)False

Question 2

Working papers should be clear, concise, and complete. They communicate ________.

Accepted Answer

A)  the degree of planning in the audit 
B)  the amount of work performed by the auditor 
C)  the amount of time spent by the auditor 
D)  the quality of the audit 
A)  the degree of planning in the audit 
B)  the amount of work performed by the auditor 
C)  the amount of time spent by the auditor 
D)  the quality of the audit

Question 3

Substantive procedures give direct evidence about the financial amounts reported in the financial statements.

Accepted Answer

A) True 
 B)False

Question 4

The audit technique of inquiry has advantages and disadvantages. Discuss some of them.

Accepted Answer

The two types of audit programs are the

Question 5

One example of a formal authoritative document is a ________.

Accepted Answer

A)  purchase order 
B)  bank statement 
C)  vendor invoice 
D)  loan application 
A)  purchase order 
B)  bank statement 
C)  vendor invoice 
D)  loan application

Question 6

Define and discuss the evidence gathering technique of inspection.

Accepted Answer

i. Inspection consists of looking at ass

Question 7

The overall audit strategy is documented in the ________.

Accepted Answer

A)  engagement letter 
B)  management letter 
C)  audit program 
D)  planning memorandum 
A)  engagement letter 
B)  management letter 
C)  audit program 
D)  planning memorandum

Question 8

Where would a copy of an auditee's long-term lease for a building most likely be kept?

Accepted Answer

A)  In the planning file. 
B)  In the permanent file. 
C)  In the administration file. 
D)  In the audit evidence file. 
A)  In the planning file. 
B)  In the permanent file. 
C)  In the administration file. 
D)  In the audit evidence file.

Question 9

Evidence that does not relate to one of the management assertions can still be relevant to the auditor.

Accepted Answer

A) True 
 B)False

Question 10

Analysis is most useful in providing evidence of ________.

Accepted Answer

A)  existence, completeness, and ownership 
B)  existence, ownership, and valuation 
C)  completeness, ownership, and presentation 
D)  completeness, valuation, and presentation 
A)  existence, completeness, and ownership 
B)  existence, ownership, and valuation 
C)  completeness, ownership, and presentation 
D)  completeness, valuation, and presentation

Question 11

The audit program prepared by the independent auditors prior to the start of fieldwork is considered appropriate documentation of ________.

Accepted Answer

A)  planning 
B)  supervision 
C)  information evaluation 
D)  quality assurance 
A)  planning 
B)  supervision 
C)  information evaluation 
D)  quality assurance

Question 12

To provide efficient, reliable evidence, confirmations should be ________.

Accepted Answer

A)  created by the client and sent to third parties to be returned to the client 
B)  created by the auditor and sent to third parties to be returned to the client 
C)  created by the auditor and sent to third parties to be returned to the auditor 
D)  created by the client and sent to third parties to be returned to the auditor 
A)  created by the client and sent to third parties to be returned to the client 
B)  created by the auditor and sent to third parties to be returned to the client 
C)  created by the auditor and sent to third parties to be returned to the auditor 
D)  created by the client and sent to third parties to be returned to the auditor

Question 13

Contrast the qualitative aspects of evidence in terms of reliability.

Accepted Answer

i. An auditor's direct, personal knowled

Question 14

Reading the terms of lease agreement for lessee is an example of analysis.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following is true about specialists?

Accepted Answer

A)  They are persons skilled in accounting and auditing. 
B)  They are not members of the audit team. 
C)  They have to be unrelated to the company or organization under audit. 
D)  They are relied on to verify all significant information on which they base their conclusions. 
A)  They are persons skilled in accounting and auditing. 
B)  They are not members of the audit team. 
C)  They have to be unrelated to the company or organization under audit. 
D)  They are relied on to verify all significant information on which they base their conclusions.

The auditor is the legal owner of the working papers related to an auditee's financial statements.

Working papers should be clear, concise, and complete. They communicate ________.

Substantive procedures give direct evidence about the financial amounts reported in the financial statements.

The audit technique of inquiry has advantages and disadvantages. Discuss some of them.

One example of a formal authoritative document is a ________.

Define and discuss the evidence gathering technique of inspection.

The overall audit strategy is documented in the ________.

Where would a copy of an auditee's long-term lease for a building most likely be kept?

Evidence that does not relate to one of the management assertions can still be relevant to the auditor.

Analysis is most useful in providing evidence of ________.

The audit program prepared by the independent auditors prior to the start of fieldwork is considered appropriate documentation of ________.

To provide efficient, reliable evidence, confirmations should be ________.

Contrast the qualitative aspects of evidence in terms of reliability.

Reading the terms of lease agreement for lessee is an example of analysis.

Which of the following is true about specialists?

Introduction to Auditing

Auditors Professional Roles and Responsibilities

Auditors Ethical and Legal Responsibilities

Reports on Audited Financial Statements

Preliminary Audit Planning: Understanding the Auditees Business

Assessing Risks in an Audit Engagement

Internal Control Over Financial Reporting

Control Assessment and Testing

Audit Sampling

The Revenues, Receivables, and Receipts Process and Cash Account Balance

The Purchases, Payables, and Payments Process

Payroll and Production Processes

The Finance and Investment Process

Completing the Audit Work

Applying Professional Judgment to Form the Audit Opinion and Issue Theaudit Report

Other Public Accounting Services and Reportsreviews and Compilations

Professional Rules of Conduct Details and Auditor Responsibilities

Part I the Audit of Accounting Estimates: Basic Material Relating to Accountingestimates

Legal Liability Cases

Other Professional Accounting Services and Reports, Including Fraud

Filters

Exam 8: Audit Evidence and Assurance

The auditor is the legal owner of the working papers related to an auditee's financial statements.

Working papers should be clear, concise, and complete. They communicate ________.

Substantive procedures give direct evidence about the financial amounts reported in the financial statements.

The audit technique of inquiry has advantages and disadvantages. Discuss some of them.

One example of a formal authoritative document is a ________.

Define and discuss the evidence gathering technique of inspection.

The overall audit strategy is documented in the ________.

Where would a copy of an auditee's long-term lease for a building most likely be kept?

Evidence that does not relate to one of the management assertions can still be relevant to the auditor.

Analysis is most useful in providing evidence of ________.

The audit program prepared by the independent auditors prior to the start of fieldwork is considered appropriate documentation of ________.

To provide efficient, reliable evidence, confirmations should be ________.

Contrast the qualitative aspects of evidence in terms of reliability.

Reading the terms of lease agreement for lessee is an example of analysis.

Which of the following is true about specialists?

Introduction to Auditing

Auditors Professional Roles and Responsibilities

Auditors Ethical and Legal Responsibilities

Reports on Audited Financial Statements

Preliminary Audit Planning: Understanding the Auditees Business

Assessing Risks in an Audit Engagement

Internal Control Over Financial Reporting

Control Assessment and Testing

Audit Sampling

The Revenues, Receivables, and Receipts Process and Cash Account Balance

The Purchases, Payables, and Payments Process

Payroll and Production Processes

The Finance and Investment Process

Completing the Audit Work

Applying Professional Judgment to Form the Audit Opinion and Issue Theaudit Report

Other Public Accounting Services and Reportsreviews and Compilations

Professional Rules of Conduct Details and Auditor Responsibilities

Part I the Audit of Accounting Estimates: Basic Material Relating to Accountingestimates

Legal Liability Cases

Other Professional Accounting Services and Reports, Including Fraud

Filters