chuong 5 bang chung va chung tu

5-17. Which of the following procedures would an auditor most likely rely on to verify management's assertion of completeness?

• Reviewing standard bank confirmations for indications of cash manipulation

• Comparing a sample of shipping document to related sales invoices

• Observing the entity's distribution of payroll check

• Confirming a sample of recorded receivables by direct communication with the debtors

5-18. In testing the existence assertion for an asset, an auditor ordinarily works from the

• Financial statements to the potentially unrecorded items

• Potentially unrecorded items to the financial statements

• Accounting records to the supporting documents

• Supporting documents to the accounting records

5-19 Which of the following statements concerning audit evidence is correct

• To be appropriate, audit evidence should be either persuasive or relevant but need not be both

• The measure of the reliability of audit evidence lies in the auditor's judgement

• The difficulty and expense of obtaining audit evidence concerning an account balance are a valid basis for omitting the test

• An entity's general ledger may be sufficient audit evidence to support the financial statements

5-20 Which of the following presumptions is least likely to relate the reliability of audit evidence?

• The more effective internal control, the more assurance it provides about the accounting data and financial statements

• An auditor's opinion is formed within a reasonable time to achieve a balance between benefit and cost

• Evidence obtained from independent sources outside the entity is more reliable than evidence secured solely within the entity

• The independent auditor's direct personal knowledge obtained through observation and inspection is more persuasive than information obtained indirectly

Answer explanation

Nói về reliability-->Balance cost+benefit không liên quan

5-21 Which of the following types of audit evidence is the least reliable

• Prenumbered purchase order forms prepared by the entity

• Bank statements obtained from the entity

• Test counts of inventory performed by the auditor

• Correspondence from the entity's attorney about litigation

5-22 Audit evidence can come in different forms with different degrees of reliability.Which of the following is the most persuasive type of evidence

• Bank statements obtained from the entity

• Computations made by the auditor

• Prenumbered entity sales invoices

• Vendors' invoices included in the entity's files

5-23 An auditor would be least likely to use confirmations in connection with the examination of

• Inventory held in a third-party warehouse

• Refundable income taxes

• Long-term debt

• Stockholders' equity

5-24 The assurance bucket is filled with all of the following types of evidence except

• Tests of controls

• The audit report

• Substantive analytical procedures

• Test of details

5-25 The current file of the auditor's working papers should generally include

• A flowchart of the accounting system

• Organization charts

• A copy of financial statements

• Copies of bond and note indentures

Answer explanation

3 cái còn lại là permanent files

5-26 The permanent file section of the working papers that is kept for each audit client most likely contains

• Review notes pertaining to questions and comments regarding the audit work performed

• A schedule of time spent on the engagement by each individual auditor

• Correspondence with the entity's legal counsel concerning pending litigation

• Narrative descriptions of the entity's accounting system and control procedures