Question 1

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 2

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.

Question 3

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 4

A combination of evidence gathering techniques provides more persuasive than evidence gathered from a single technique.

Accepted Answer

A) True 
 B)False

Question 5

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 6

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 7

Permanent audit files contain such documents as the engagement letter,client organization chart,and internal control system flowcharts.

Accepted Answer

A) True 
 B)False

Question 8

In considering the effectiveness of evidence gathering procedures,it was found that most companies have adjustments.Research also shows that ________.

Accepted Answer

A) both receivables and payables are usually overstated 
B) receivables are usually overstated and payables are usually understated 
C) receivables are usually understated and payables are usually overstated 
D) both receivables and payables are usually understated 
A) both receivables and payables are usually overstated 
B) receivables are usually overstated and payables are usually understated 
C) receivables are usually understated and payables are usually overstated 
D) both receivables and payables are usually understated

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

Destroying working papers may prevent auditors from proving due care if they are sued for negligence.

Accepted Answer

A) True 
 B)False

Question 11

For new clients,the auditor can obtain knowledge about the client's business and its industry from the permanent file.

Accepted Answer

A) True 
 B)False

Question 12

There are two kinds of audit programs: (1) balance-audit programs and (2) cycle-audit programs.

Accepted Answer

A) True 
 B)False

Question 13

Since audit papers are the property of the auditor,what was fundamentally wrong about Arthur Andersen's decision to shred working papers related to the Enron audit.

Accepted Answer

Andersen's reputation declined in Januar

Question 14

Spoken and written representations given by the auditee's officers,directors,owners,and employees are generally considered reliable enough to stand on their own.

Accepted Answer

A) True 
 B)False

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

Which of the following is true about specialists?

Analysis is most useful in providing evidence of ________.

A combination of evidence gathering techniques provides more persuasive than evidence gathered from a single technique.

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

One example of a formal authoritative document is a ________.

Permanent audit files contain such documents as the engagement letter,client organization chart,and internal control system flowcharts.

In considering the effectiveness of evidence gathering procedures,it was found that most companies have adjustments.Research also shows that ________.

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

Destroying working papers may prevent auditors from proving due care if they are sued for negligence.

For new clients,the auditor can obtain knowledge about the client's business and its industry from the permanent file.

There are two kinds of audit programs: (1) balance-audit programs and (2) cycle-audit programs.

Since audit papers are the property of the auditor,what was fundamentally wrong about Arthur Andersen's decision to shred working papers related to the Enron audit.

Spoken and written representations given by the auditee's officers,directors,owners,and employees are generally considered reliable enough to stand on their own.

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

hapter 15 Completing the Audit Work

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

Other Public Accounting Services and Reportsreviews and Compilations

Professional Rules of Conduct Details and Auditor Responsibilities

The Audit of Accounting Estimates: Basic Material Relating to Accounting Estimates

Legal Liability Cases

Other Professional Accounting Services and Reports, Including Fraud Auditing

Filters

Exam 8: Audit Evidence and Assurance

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

Which of the following is true about specialists?

Analysis is most useful in providing evidence of ________.

A combination of evidence gathering techniques provides more persuasive than evidence gathered from a single technique.

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

One example of a formal authoritative document is a ________.

Permanent audit files contain such documents as the engagement letter,client organization chart,and internal control system flowcharts.

In considering the effectiveness of evidence gathering procedures,it was found that most companies have adjustments.Research also shows that ________.

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

Destroying working papers may prevent auditors from proving due care if they are sued for negligence.

For new clients,the auditor can obtain knowledge about the client's business and its industry from the permanent file.

There are two kinds of audit programs: (1) balance-audit programs and (2) cycle-audit programs.

Since audit papers are the property of the auditor,what was fundamentally wrong about Arthur Andersen's decision to shred working papers related to the Enron audit.

Spoken and written representations given by the auditee's officers,directors,owners,and employees are generally considered reliable enough to stand on their own.

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

hapter 15 Completing the Audit Work

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

Other Public Accounting Services and Reportsreviews and Compilations

Professional Rules of Conduct Details and Auditor Responsibilities

The Audit of Accounting Estimates: Basic Material Relating to Accounting Estimates

Legal Liability Cases

Other Professional Accounting Services and Reports, Including Fraud Auditing

Filters