Exam 7: Audit Evidence

A canceled check written by the client, made payable to a local supplier and drawn on the client's bank account is one type of internal document.

When the auditor uses tracing as an audit procedure for tests of transactions she is primarily concerned with which audit objective?

The auditor's results of evidence gathering procedures are contained in audit documentation for the audit. When preparing the requisite audit, documentation should be cognizant of:

"The use of comparisons and relationships to assess whether account balances or other data appear reasonable compared to the auditor's expectations" is a definition of:

Audit documentation should possess certain characteristics. Which of the following is true regarding those characteristics?

Confirmations are ordinarily used to verify account balances, but may be used to verify transactions.

Determine which of the following is most correct regarding the reliability of audit evidence.

Audit evidence to support an opinion about the fairness of a client's financial statements consists entirely of written information.

Which of the following is not a characteristic of the reliability of evidence?

Audit documentation should provide support for:

Match five of the terms (a-h) with the definitions provided below (1-5): a. Audit documentation b. Audit procedures c. Audit objectives d. Analytical procedures e. Budgets f. Reliability of evidence g. Sufficiency of evidence h. Persuasiveness of evidence ________ 1. Use of comparisons and relationships to assess the reasonableness of account balances. ________ 2. Detailed instructions for the collection of a type of audit evidence. ________ 3. The degree to which evidence can be considered believable or trustworthy. ________ 4. Contains all the information that the auditor considers necessary to conduct an adequate audit and to provide support for the audit report. ________ 5. This is determined by the amount of evidence obtained.

The auditor is concerned that a client is failing to bill customers for shipments. An audit procedure that would gather relevant evidence would be to:

Define the following terms commonly used in audit procedures: 1. Examine 2. Scan 3. Compute 4. Foot 5. Compare 6. Count 7. Vouch

Auditors must make decisions regarding what evidence to gather and how much to accumulate. Which of the following is a decision that must be made by auditors related to evidence?

Which of the following statements is true?

An analytical procedure used to test the reasonableness of an account balance occurs when the auditor calculates the expected balance and compares it with the actual balance. The auditor's expected account balance may be determined by:

Which one of the following is not one of the primary purposes of audit documentation prepared by the audit team?

The permanent files included as part of audit documentation do not normally include:

The basis for preparing financial statements for companies is the general ledger. As soon as possible the auditor obtains the general ledger accounts of the client and prepares a working trial balance. Discuss the audit documentation in the current file that relates to the working trial balance. Include a description of lead and support schedules in your answer.

Given the audit procedures below, which one provides the most reliable evidence?