Audit 2 Chp 1B

"An audit is the independent examination of financial information of an entity, conducted with a view to expressing an opinion thereon".

This definition of audit is given by

• International Auditing & Accounting Standard Board

• International Auditing & Assurance Standard Board

• International Auditing & Accumulative Standard Board

• International Auditing & Assessment Standard Board

The following are audit tests except

• Enquiry

• Confirmation

• Recalculation

• Reassessment

Risk assessment procedures require

• Inspection, Observation, Enquiry and Analytical procedures

• Inspection, Confirmation, Enquiry and Analytical procedures

• Inspection, Observation, Recalculation and Analytical procedures

• Observation, Enquiry, Confirmation and Recalculation

The following are documents related to sales transactions except

• Cash Bills

• Cash Receipt

• Account Receivables

• Credit Note

The suitable assertion for item expenses as follows except for

• Occurrence

• Right & Obligation

• Completeness

• Accuracy

Audit procedures on financial statements should involve Test of Control and Test of Assessment

• True

• False

Here are the things that need to be identified as inherent risk.

• A increase in sales due to economic growth

• A decrease in sales due to economic decline

• Doubtful debts due to the trade receivable balances

• The accuracy of sales due to proper sales recognition

Test of details transaction are normally performed during an interim audit and in the form of dual-purpose tests.

• True

• False

Purpose of auditing expenditure are to ensure all expenses are :

• Recorded and Posting

• Recorded and Genuine

• Collected and Genuine

• Collected and Posting

Completeness is a

• assertion to establish complete of purchase cycle of transaction

• assertion to establish complete of purchase order transaction

• assertion to establish complete of purchase return transaction

• assertion to establish complete of purchase payment transaction