Kayla Harbaugh
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Auditing Chapter 6 homework

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Kayla Harbaugh
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Auditing Chapter 6 homework

Pregunta 1 de 30

1

Auditing Chapter 6 homework

Selecciona una de las siguientes respuestas posibles:

  • Sufficiency of evidence

  • Quantity of evidence

  • Meaning of evidence

  • Quality of evidence

Explicación

Pregunta 2 de 30

1

Two determinants of the persuasiveness of evidence include which of the following?

Selecciona una de las siguientes respuestas posibles:

  • Appropriateness and sufficiency.

  • Competence and sufficiency.

  • Independence and effectiveness.

  • Relevance and reliability.

Explicación

Pregunta 3 de 30

1

Directional testing involves testing transactions or balances for which type of error?

Selecciona una de las siguientes respuestas posibles:

  • Neither overstatement nor understatement.

  • Overstatment

  • Understatement

  • Either overstatement or understatement

Explicación

Pregunta 4 de 30

1

Which one of the following would be considered the most reliable type of audit evidence?

Selecciona una de las siguientes respuestas posibles:

  • Customer accounts receivable files.

  • Confirmations from banks.

  • Purchase orders from vendors

  • Computerized general ledger.

Explicación

Pregunta 5 de 30

1

Which one of the following would be the most reliable type of evidence?

Selecciona una de las siguientes respuestas posibles:

  • Inquiry with the in-house attorney.

  • Indirectly obtained evidence.

  • Photocopies

  • Observation of assets

Explicación

Pregunta 6 de 30

1

Which one of the following would be the least reliable type of evidence?

Selecciona una de las siguientes respuestas posibles:

  • Confirmations returned by bank directly to the auditor.

  • Evidence from an easily overridden information system.

  • Letters of communication from the Securities Exchange Commission.

  • Physical examination of perpetual inventory

Explicación

Pregunta 7 de 30

1

An example of an external document would include which of the following?

Selecciona una de las siguientes respuestas posibles:

  • Vendor invoices

  • Customer orders

  • Confirmation replies from customers

  • All of the above

Explicación

Pregunta 8 de 30

1

The process of vouching helps establish which of the following regarding recorded transactions?

Selecciona una de las siguientes respuestas posibles:

  • Transactions are presented properly.

  • Transactions have been recorded

  • Transactions are complete

  • Transactions are valid

Explicación

Pregunta 9 de 30

1

Footing, cross-footing, and tests of extensions are examples of which approach to gathering evidence?

Selecciona una de las siguientes respuestas posibles:

  • Vouching

  • Recalculation

  • Examination of documentation

  • Reprocessing

Explicación

Pregunta 10 de 30

1

An audit program provides an effective means for which of the following?

Selecciona una de las siguientes respuestas posibles:

  • Reviewing the completeness and persuasiveness of procedures performed

  • Recording the audit work performed and those responsible for performing the work

  • Organizing and distributing the work

  • All of the above

Explicación

Pregunta 11 de 30

1

When 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.

Selecciona una de las siguientes respuestas posibles:

  • I only

  • I and III only

  • II only

  • I, II, and III

Explicación

Pregunta 12 de 30

1

An auditor selects a sample of items recorded and traces them back to the supporting documentation. This is an example of which of the following?

Selecciona una de las siguientes respuestas posibles:

  • Direct testing for rights

  • Directional testing for completeness

  • Directional testing for existence

  • Direct testing for valuation

Explicación

Pregunta 13 de 30

1

Which of the following assertions is the primary assertion that is satisfied by physically observing the client's count of inventory?

Selecciona una de las siguientes respuestas posibles:

  • Valuation

  • Completeness

  • Rights

  • Existence

Explicación

Pregunta 14 de 30

1

When using the audit procedure vouching, the auditor is primarily concerned with which of the following assertions?

Selecciona una de las siguientes respuestas posibles:

  • Existence

  • Completeness

  • Classification

  • Authorization

Explicación

Pregunta 15 de 30

1

The extent of procedures is affected mostly by which of the following factors?

Selecciona una de las siguientes respuestas posibles:

  • The availability of the client's staff at or near the balance sheet date

  • The auditors judgement that misstatements are probable in certain balances

  • The sheer volume of procedures to be applied by the auditor

  • The time of year in which the client takes a physical inventory in the warehouse

Explicación

Pregunta 16 de 30

1

An audit program is created to specify which of the following?

Selecciona una de las siguientes respuestas posibles:

  • The type of audit opinion to be rendered based upon procedures performed

  • The audit procedures that will be performed every year for the client

  • How an auditor should think while performing audit procedures

  • Audit objectives and procedures to be followed during the audit process

Explicación

Pregunta 17 de 30

1

Which one of the following is the primary reason for documenting audit work?

Selecciona una de las siguientes respuestas posibles:

  • To provide a stand-alone medium that gives audit conclusions and supports the opinion

  • To prevent litigation by other parties that question the audit performance

  • To give the client a full reporting of all work performed on their behalf

  • To supply a point of reference for all auditors performing the work subsequently

Explicación

Pregunta 18 de 30

1

To be considered reliable evidence, confirmations must be controlled by which of the following parties?

Selecciona una de las siguientes respuestas posibles:

  • A client employee responsible for accounts receivable

  • A client's controller or CFO

  • A client's internal audit department

  • An external auditor

Explicación

Pregunta 19 de 30

1

Conclusions are typically documented by auditors in which type of work paper?

Selecciona una de las siguientes respuestas posibles:

  • Audit program

  • Representation letter

  • Audit planning memo

  • Audit memoranda

Explicación

Pregunta 20 de 30

1

The processes used by management in developing estimates include which of the following?

Selecciona una de las siguientes respuestas posibles:

  • Controls over the process

  • The reliability of underlying data in developing the estimate

  • Use of outside experts by management (for example, how they were used and their expertise)

  • All of the above

Explicación

Pregunta 21 de 30

1

Which of the following is the primary source for evidence to corroborate the existence of pending litigation?

Selecciona una de las siguientes respuestas posibles:

  • Management representation letters

  • Vendor confirmations

  • Disclosures in financial statements

  • Attorney confirmations

Explicación

Pregunta 22 de 30

1

Performance 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?

Selecciona una de las siguientes respuestas posibles:

  • Decrease

  • Increase

  • Become more difficult to ascertain

  • Remain the same

Explicación

Pregunta 23 de 30

1

What is determined to be appropriate and sufficient will be affected by which of the following?

Selecciona una de las siguientes respuestas posibles:

  • The client's risk of material misstatement

  • The risk of material weakness in internal controls

  • Either a or b

  • None of the above

Explicación

Pregunta 24 de 30

1

Audit documentation should contain which of the following?

Selecciona una de las siguientes respuestas posibles:

  • A heading that includes the name of the audit client, an explanatory title, and the balance sheet date

  • The initials or electronic signature of the auditor performing the audit test and the date the test was completed

  • The initials or electronic signature of the manager or partner who reviewed the documentation and the date the review was completed

  • All of the above

Explicación

Pregunta 25 de 30

1

Which of the following is not an estimate that requires significant auditor judgment and skepticism?

Selecciona una de las siguientes respuestas posibles:

  • Common stock and related additional paid-in capital

  • Valuation of goodwill

  • Allowance for bad debt

  • Obligations for pension plans

Explicación

Pregunta 26 de 30

1

When using confirmations with outside parties, the auditor must assure which of the following about the outside party?

Selecciona una de las siguientes respuestas posibles:

  • The outside party exists

  • The outside party is able to respond objectively and independently

  • The outside party is unbiased in responding

  • All of the above

Explicación

Pregunta 27 de 30

1

Which of the following characteristics are not normally included in quality audit documentation?

Selecciona una de las siguientes respuestas posibles:

  • A cross-reference

  • An assessment of whether the test indicates the possibility of material misstatement in an account

  • Initials of the person preparing and reviewing the document

  • All are included in quality audit documentation

Explicación

Pregunta 28 de 30

1

A date at which audit evidence is collected earlier than the balance sheet date is referred to as what?

Selecciona una de las siguientes respuestas posibles:

  • Subsequent date

  • Cutoff period

  • Significant date

  • Interim date

Explicación

Pregunta 29 de 30

1

The written record that forms the basis for the auditor’s conclusions is referred to as what?

Selecciona una de las siguientes respuestas posibles:

  • Audit adjustment

  • Audit documentation

  • Accounting records

  • Footing

Explicación

Pregunta 30 de 30

1

The auditor may use analytical procedures during which phase of the audit?

Selecciona una de las siguientes respuestas posibles:

  • Planning the audit

  • Substantive testing

  • Completing the audit

  • All of the above

Explicación

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