Audit Evidence and Audit Procedures Flashcard

Front

What is the primary purpose of audit evidence?

Back

To support the auditor's opinion

Front

Which of the following is NOT a type of audit test? Physical inspection, Enquiry, Analytical procedures, Financial forecasting

Back

Financial forecasting

Front

What does sufficiency of audit evidence measure?

Back

The quantity of evidence to support the audit opinion

Front

Which factor does NOT affect the auditor's judgment on sufficiency of audit evidence? Options: Assessment of inherent risk, Experience gained during previous audits, Quality of audit evidence

Back

Number of employees in the company

Front

What is control risk?

Back

The risk that internal controls fail to prevent or detect misstatements

Front

Which type of audit evidence is considered more reliable? Options: Internal documents, Oral confirmations, External confirmations, Photocopied documents

Back

External confirmations

Front

What does the term 'materiality' refer to in auditing?

Back

The potential impact of misstatements on users' decisions

Front

Which assertion relates to whether recorded assets exist? Options: Valuation, Classification, Existence, Completeness

Back

Existence

Front

What is the purpose of analytical procedures in auditing?

Back

To evaluate financial information by analyzing relationships

Front

Which of the following is a substantive procedure? Inquiry, Analytical procedures, Test of controls, Observation

Back

Analytical procedures