Audit Evidence

A sample in which the characteristics of the sample are the same as those of the population is a(n)

• variables sample

• representative sample

• attributes sample

• random sample

When the auditor decides to select less than 100 percent of the population for testing, the auditor is said to use

• audit sampling

• representative sampling

• poor judgment

• estimation sampling

One of the causes of nonsampling risk is

• inadequate sample size

• choosing the wrong sample size

• ineffective audit procedures

• exceptions being found in the sample

Which one of the choices below is most correct regarding a cause of sampling risk

• ineffective use of audit procedures

• testing less than the entire population

• use of extensive tests of controls

• use of random sampling

Which of the following is an accurate statement regarding audit evidence?

• Responses to the auditor's questions by client employees are considered highly persuasive evidence.

• Audit evidence should provide an absolute level of assurance.

• The auditor uses evidence to determine whether the statements are fairly presented.

• All evidence must be highly persuasive.

The ________ always includes a list of the ________, and it usually includes sample sizes, items to select, and the timing of the tests.

• audit program; audit objectives

• audit assertion; audit objectives

• audit assertion; audit program

• audit program; audit procedures

Audit evidence has two primary qualities for the auditor; relevance and reliability. Given the choices below, which provides the auditor with the most reliable audit evidence?

• confirmation of accounts receivable balance received from a customer

• internal memo explaining the issuance of a credit memo

• general ledger account balances

• copy of month-end adjusting entries

Appropriateness of evidence is a measure of the

• sufficiency of evidence.

• quantity of evidence.

• quality of evidence.

• meaning of evidence.

Which of the following statements regarding the relevance of evidence is correct?

• To be relevant, evidence must relate to multiple audit objectives.

• To be relevant, evidence must be derived from a system including effective internal controls.

• To be relevant, evidence must be persuasive.

• To be relevant, evidence must pertain to the audit objective of the evidence.

The two characteristics of the appropriateness of evidence are

• relevance and timeliness.

• relevance and accuracy.

• relevance and reliability.

• reliability and accuracy.