Audit Evidence-Part 2

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

• Obligations for pension plans

• Valuation of goodwill

• Allowance for bad debt

• Common stock and related additional paid-in capital

Which of the following is not a type of internal documentation?

• Legal documents

• Business documents

• Third-party documents

• Accounting documents

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

• The outside party exists

• The outside party is able to respond objectively and independently

• The outside party is unbiased in responding

• All the above

Each of the audit procedures that an auditor could select possesses which of the following characteristics?

• Audit procedures take time, effort, and money

• Audit procedures are difficult to perform

• Audit procedures require multiple people from the firm to perform

• All of the above

Which of the following types of audit evidence is the most reliable?

• Evidence from the client's organization

• Evidence from a poorly controlled system

• Directly observable evidence

• Facsimiles of documents

Which of the following types of audit evidence is the least reliable?

• Evidence from the client's organization

• Evidence derived from a well-controlled system

• Evidence from independent outside sources

• Original documents

In evaluating cost of evidence, which of the following evidence qualities of the audit usually has the lowest cost?

• High quality

• Medium quality

• Low quality

• All cost the same

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

• Subsequent date

• Cutoff period

• Significant date

• Interim date

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

• Audit documentation

• Audit adjustment

• Accounting records

• Footing

Which of the following is not a factor that would impact the effectiveness of a substantive analytical procedure?

• Nature of the assertion being tested

• Plausibility and predictability of the relationships in the data

• Excessive disaggregation of the relevant data

• Rigor of the analytical procedure employed