In the performing audit tests phase of an audit engagement, the following GAAS apply:
General and field work standards.
Which of these is not a decision made by the auditor in determining what audit evidence to gather?
The nature of the tests, The timing of the tests, The extent of testing, Staffing of the tests, All are decisions made
Which of these is an example of vouching?
Comparing recorded purchases to vendor invoices and purchase orders
Which of these is the set of working papers that affect the current year and future audits?
Evidential matter supporting the financial statements consists of the underlying accounting data and all corroborating information available to the auditor. Which of the following is an example of corroborating information?
Client-prepared worksheets supporting cost allocations among jobs.
The strongest criticism of the reliability of audit evidence which the auditor physically observes is that:
The auditor may not be qualified to evaluate the items he or she is observing.
Audit evidence can come in different forms with different degrees of persuasiveness. Which of the following is the least persuasive type of evidence?
Prenumbered client invoices.
Which of the following types of documentary evidence should the auditor consider to be the most reliable?
Confirmation of an account payable balance mailed by and returned directly to the auditor.
To test the completeness assumption about the client's recorded sales, which would be the appropriate direction of testing and terminology?
Trace sales invoices to postings in the sales register.
Which of the following best describes the primary purpose of gathering audit evidence?
To gather corroborative information
The validity of evidential matter is dependent on its relevance and reliability. The situations given below indicate the relative reliability a CPA has placed on two types of evidence obtained in different situations. Which of these is not an appropriate reliability judgment?
The CPA places more reliance on the client's report from an expert on an inventory of precious gems than on the CPA's physical observation of the gems.
The sufficiency and competency of evidential matter ultimately is based on the:
Judgment of the auditor.
An auditor ordinarily uses a working trial balance resembling the financial statements without footnotes, but containing columns for
Reclassifications and adjustments
The current file of an auditor's working papers most likely would include a copy of the:
The auditor designs audit procedures to obtain evidence about whether all sales transactions are recorded in the proper time period. The specific management assertion to which this relates is:
Which of these is true about the competence of audit evidence?
The auditor's direct personal knowledge obtained through observation and inspection is more competent than evidence obtained indirectly from outside sources.
Working papers are used to record the results of the auditor's evidence gathering procedures. When preparing working papers the auditor should remember that
Working papers should be designed to meet the circumstances and the auditor's needs on each engagement.
Which of the following statements is NOT true about accounting records?
Accounting records alone generally provide sufficient evidence on which to base an audit opinion on the financial statements
Which of the following statements is generally correct about the reliability of audit evidence?
The auditor's direct personal knowledge, obtained through observation and inspection, is more persuasive than information obtained from inference
Which of the following best describes the auditor's decision about changing the nature of audit tests?
The auditor chooses to perform analytical procedures rather than tests of controls
Audit objectives are important because
each audit objective usually is affected by different risks and requires different evidence.
The auditor wants to design audit procedures to ascertain that all sales transactions were recorded in the proper time period and that no January 20x2 transactions were recorded in December 20x1. This is related to which of the following audit objectives?
An auditor wants to determine that all sales returns have been recorded. This relates to which of the following transaction class audit objectives?
An auditor wants to determine that recorded receivables represent amounts actually owing from customers. This relates to which of the following audit objectives?
the account balance audit objective related to existence
The auditor wants to wants to determine that sales are recorded in correct amounts based on the number of items shipped and appropriate prices. This related to which of the following audit objectives?
the transaction class audit objective related to accuracy
Which of the following best describe a situation which would cause the auditor to obtain more evidence rather than less evidence?
The assertion being audited has a higher risk of material misstatement.
Which of the following situations represents the least reliable, rather than more reliable, evidence?
Evidence is not documented in a contemporaneous fashion, such as a subsequent oral representation.
If the auditor studies plausible relations among both financial statement financial data and other nonfinancial data, this is best described as which of the following types of audit procedures?
If an auditor vouches entries in accounting records, such as a sales invoice, to supporting accounting records, such as a bill of lading, this is an example of which of the following types of audit procedures?
inspection of documents and records
Which of the following is the best example of changing the timing of audit procedures?
The auditor sends confirmations at October 31st rather than December 31st (year-end).
An auditor's working papers should
show that the accounting records agree or reconcile with the financial statements.
Which of the following statements concerning working papers is INCORRECT?
An auditor's working papers are not the place to like assessed risks and resultant audit procedures.
The current file of the auditor's working papers generally should include
a copy of the financial statements
The audit working paper that reflects the major components of an amount reported in the financial statements is the