Test Chapter 4 - Fundamental of auditing

Which two of the following are valid comments about the quality of audit evidence?

• Evidence from external sources is more reliable than evidence obtained from the entity's record

• Evidence from internal sources is more reliable when related internal controls operate effectively

• Evidence from internal sources is more reliable than evidence by the auditor

• Photocopies are more reliable than facsimiles

The level of assurance given by an assurance engagement will depend on the type of engagement.

Select the level of assurance that will be given:

Statutory audit

• Absolute

• Reasonable

• Limited

The level of assurance given by an assurance engagement will depend on the type of engagement.

Select the level of assurance will be given:

Report on prospective financial information

• Absolute

• Reasonable

• Limited

When financial statement has any material misstatement, what is audit report that auditor will be given?

• Unmodified

• Modified

When financial statement has only immaterial misstatement, what is audit report that auditor will be given?

• Unmodified

• Modified

When auditor cannot collect sufficient appropriate audit evidence, what is audit report that auditor will be given?

• Modified

• Unmodified

Select the financial statement assertion that is being tested?

Tracing non-current assets which have been observed in use back to the non-current asset register

• Existence

• Completeness

• Classification

• Presentation

Which three of the following are assertions used by the auditor about account balances at the period end?

• Existence

• Accuracy valuation and allocation

• cut-off

• Completeness

Which two of the following would be included in an auditor report?

• Statement of director's responsibilities

• Identification of the criteria

• Auditor's opinion

• Management's opinion

Which three of the following are assertions used by the auditor about classes of transaction?

• Occurrence

• Cut-off

• Existence

• Completeness

• Rights and obligations