Audit evidence and procedure

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

• Oral representation from the client

• Internal memo prepared by the client

• Confirmation from a third party

• Copy of a sales invoice

Which of the following is not a type of audit procedure test?

• Inspection

• Evaluation

• Inquiry

• Observation

What is the primary purpose of performing audit procedures?

• To detect fraud

• To express an opinion on internal controls

• To obtain sufficient appropriate audit evidence

• To prepare financial statements

Which procedure would be most appropriate for verifying the existence of inventory?

• Performing physical observation

• Sending confirmations to customers

• Reviewing bank reconciliations

• Analyzing sales trends

Audit evidence is said to be appropriate when it is:

• Relevant and consistent

• Relevant and reliable

• Timely and sufficient

• Sufficient and quantitative

Which of the following is considered internal audit evidence?

• Bank confirmation

• Minutes of board meetings

• Vendor invoice

• Customer confirmation letter

When an auditor performs recalculation, what is the auditor doing?

• Verifying mathematical accuracy

• Recomputing controls

• Re-performing internal audit tasks

• Re-analyzing audit risk

Which of the following types of audit evidence is considered least persuasive?

• Original documents

• Physical examination

• Oral representation by client management

• Confirmation from third parties

What is the objective of performing analytical procedures in the audit?

• To test all transactions individually

• To ensure taxes are correctly filed

• To identify unusual fluctuations or relationships

• To approve journal entries

An auditor reviews the aging schedule of accounts receivable. This is an example of:

• Recalculation

• Analytical procedures

• External confirmation

• Observation