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Auditing Chapter 6 homework
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Preguntas del test (30)
1Auditing Chapter 6 homework
- ASufficiency of evidence
- BQuantity of evidence
- CMeaning of evidence
- DQuality of evidence
2Two determinants of the persuasiveness of evidence include which of the following?
- AAppropriateness and sufficiency.
- BCompetence and sufficiency.
- CIndependence and effectiveness.
- DRelevance and reliability.
3Directional testing involves testing transactions or balances for which type of error?
- ANeither overstatement nor understatement.
- BOverstatment
- CUnderstatement
- DEither overstatement or understatement
4Which one of the following would be considered the most reliable type of audit evidence?
- ACustomer accounts receivable files.
- BConfirmations from banks.
- CPurchase orders from vendors
- DComputerized general ledger.
5Which one of the following would be the most reliable type of evidence?
- AInquiry with the in-house attorney.
- BIndirectly obtained evidence.
- CPhotocopies
- DObservation of assets
6Which one of the following would be the least reliable type of evidence?
- AConfirmations returned by bank directly to the auditor.
- BEvidence from an easily overridden information system.
- CLetters of communication from the Securities Exchange Commission.
- DPhysical examination of perpetual inventory
7An example of an external document would include which of the following?
- AVendor invoices
- BCustomer orders
- CConfirmation replies from customers
- DAll of the above
8The process of vouching helps establish which of the following regarding recorded transactions?
- ATransactions are presented properly.
- BTransactions have been recorded
- CTransactions are complete
- DTransactions are valid
9Footing, cross-footing, and tests of extensions are examples of which approach to gathering evidence?
- AVouching
- BRecalculation
- CExamination of documentation
- DReprocessing
10An audit program provides an effective means for which of the following?
- AReviewing the completeness and persuasiveness of procedures performed
- BRecording the audit work performed and those responsible for performing the work
- COrganizing and distributing the work
- DAll of the above
11When may audit procedures be performed?
I - on the balance sheet date.
II - prior to the balance sheet date.
III - subsequent to the balance sheet date.- AI only
- BI and III only
- CII only
- DI, II, and III
12An auditor selects a sample of items recorded and traces them back to the supporting documentation. This is an example of which of the following?
- ADirect testing for rights
- BDirectional testing for completeness
- CDirectional testing for existence
- DDirect testing for valuation
13Which of the following assertions is the primary assertion that is satisfied by physically observing the client's count of inventory?
- AValuation
- BCompleteness
- CRights
- DExistence
14When using the audit procedure vouching, the auditor is primarily concerned with which of the following assertions?
- AExistence
- BCompleteness
- CClassification
- DAuthorization
15The extent of procedures is affected mostly by which of the following factors?
- AThe availability of the client's staff at or near the balance sheet date
- BThe auditors judgement that misstatements are probable in certain balances
- CThe sheer volume of procedures to be applied by the auditor
- DThe time of year in which the client takes a physical inventory in the warehouse
16An audit program is created to specify which of the following?
- AThe type of audit opinion to be rendered based upon procedures performed
- BThe audit procedures that will be performed every year for the client
- CHow an auditor should think while performing audit procedures
- DAudit objectives and procedures to be followed during the audit process
17Which one of the following is the primary reason for documenting audit work?
- ATo provide a stand-alone medium that gives audit conclusions and supports the opinion
- BTo prevent litigation by other parties that question the audit performance
- CTo give the client a full reporting of all work performed on their behalf
- DTo supply a point of reference for all auditors performing the work subsequently
18To be considered reliable evidence, confirmations must be controlled by which of the following parties?
- AA client employee responsible for accounts receivable
- BA client's controller or CFO
- CA client's internal audit department
- DAn external auditor
19Conclusions are typically documented by auditors in which type of work paper?
- AAudit program
- BRepresentation letter
- CAudit planning memo
- DAudit memoranda
20The processes used by management in developing estimates include which of the following?
- AControls over the process
- BThe reliability of underlying data in developing the estimate
- CUse of outside experts by management (for example, how they were used and their expertise)
- DAll of the above
21Which of the following is the primary source for evidence to corroborate the existence of pending litigation?
- AManagement representation letters
- BVendor confirmations
- CDisclosures in financial statements
- DAttorney confirmations
22Performance of audit procedures at an interim date causes the risk of material misstatement occurring between the interim date and the end of the year to do which of the following?
- ADecrease
- BIncrease
- CBecome more difficult to ascertain
- DRemain the same
23What is determined to be appropriate and sufficient will be affected by which of the following?
- AThe client's risk of material misstatement
- BThe risk of material weakness in internal controls
- CEither a or b
- DNone of the above
24Audit documentation should contain which of the following?
- AA heading that includes the name of the audit client, an explanatory title, and the balance sheet date
- BThe initials or electronic signature of the auditor performing the audit test and the date the test was completed
- CThe initials or electronic signature of the manager or partner who reviewed the documentation and the date the review was completed
- DAll of the above
25Which of the following is not an estimate that requires significant auditor judgment and skepticism?
- ACommon stock and related additional paid-in capital
- BValuation of goodwill
- CAllowance for bad debt
- DObligations for pension plans
26When using confirmations with outside parties, the auditor must assure which of the following about the outside party?
- AThe outside party exists
- BThe outside party is able to respond objectively and independently
- CThe outside party is unbiased in responding
- DAll of the above
27Which of the following characteristics are not normally included in quality audit documentation?
- AA cross-reference
- BAn assessment of whether the test indicates the possibility of material misstatement in an account
- CInitials of the person preparing and reviewing the document
- DAll are included in quality audit documentation
28A date at which audit evidence is collected earlier than the balance sheet date is referred to as what?
- ASubsequent date
- BCutoff period
- CSignificant date
- DInterim date
29The written record that forms the basis for the auditor’s conclusions is referred to as what?
- AAudit adjustment
- BAudit documentation
- CAccounting records
- DFooting
30The auditor may use analytical procedures during which phase of the audit?
- APlanning the audit
- BSubstantive testing
- CCompleting the audit
- DAll of the above
Información
- Descripción
- Auditing Chapter 6 homework
- Autor
- Kayla Harbaugh
- Idioma
- English
- Visitas
- 22
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- Valoración
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