Exam 13: Overall Audit Plan and Audit Program

In accumulating final evidence upon which to base an audit opinion, the auditor should perform four activities. List the activities below.

Substantive tests of transactions and control tests are often conducted simultaneously.

An exception or deficiency found in a test of controls:

Analytical procedures must be performed in:

Which of the following tests commonly occur together?

After finishing the review phase of the study and evaluation of internal control in an audit, the auditor should perform tests of controls on:

Which of the following further audit procedures are used to determine whether all six transaction related audit objectives have been achieved for each class of transactions?

Under normal circumstances, there should be no variation in the audit evidence mix from cycle to cycle for a given audit engagement.

Presentation and disclosure related audit objectives would be performed in which phase of the audit process?

Substantive tests of details of balances are the most costly type of audit test to perform.

Discuss the major activities and procedures performed by the auditor in the plan and design of the audit approach.

In the context of an audit of financial statements, substantive tests are audit procedures that:

Auditing standards recognize that in instances where a significant amount of audit evidence is in electronic form, it may not be possible to reduce detection risk to an acceptable level by performing only substantive tests.

Describe the five types of audit tests. Identify which of the five types are substantive tests, and which are used to reduce assessed control risk.

The primary emphasis in most tests of details of balances is on the:

Which of the following is not a direct result of performing analytical procedures?

Which of the following is/are performed in an audit of internal control over financial reporting?

When an auditor believes that analytical procedures indicate a reasonable possibility of misstatement, the auditor usually would:

Tests of controls should be performed after substantive tests of transactions.

There are three stages of the audit in which analytical procedures are performed. Identify each of these three stages and, for each stage, discuss the purpose of performing analytical procedures in that stage. Also indicate in which stage(s) analytical procedures are required by current professional auditing standards.