EneyblingAsesment_Modyul3_Three-One-Two

The auditor should assess the objectivity of the expert by considering the

• a. Professional certification of an expert

• b. Experience and reputation of an expert

• c. expert’s relationship with the client

• d. the scope of the expert’s work

Analytical procedures used as a risk assessment procedure are performed primarily to assist the auditor in

• a. Identifying areas that may represent specific risks

• b. Obtaining knowledge about the design of internal control

• c. Obtaining knowledge about the operating effectiveness of the client’s internal control

• d. Gathering corroborative evidence about the validity of an account balance

Significant unexpected differences identified by analytical procedures will usually necessitate a (an)

• a. Consistency explanatory paragraph added to the audit report

• b. Review of the internal control structure

• c. Explanation in the representation letter

• d. Auditor investigation

Analytical procedures used in planning an audit should focus on identifying

• a. Material weaknesses in the internal control structure

• b. The predictability of financial data from individual transactions

• c. The various assertions that are embodied in the financial statements

• d. Areas that may represent specific risk relevant to the audit

An audit program should be designed for each individual audit and should include audit steps and procedures to

• a. Detect and eliminate all fraud

• b. Increase the amount of management information available

• c. Provide assurance that the objectives of the audit are met

• d. Insure that only material items are audited

Which of the ff statements is incorrect about audit planning documentation?

• a. The audit plan and related program should no longer be changed once the audit is started

• b. Although the precise form and content of the audit plan may vary, it should be sufficiently detailed to guide the development of an audit program

• c. The audit program should set out the nature, timing and extent of planned audit procedures required to implement the overall audit plan

• d. In preparing an audit program, the auditor should consider the specific assessments of inherent control risks and the required level of assurance to be provided by substantive tests.

• a

• b

• c

• d

• a

• b

• c

• d

• a

• b

• c

• d

• a

• b

• c

• d