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WorksheetsAudit Evidence & Documentation
Total questions: 11
Worksheet time: 10mins
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.
Auditors use evidence to help them draw conclusions.
True
False
All evidence must have the same level of persuasiveness.
True
False
An example of less persuasive evidence to an auditor is the observation of the physical inventory taken by an audit client.
True
False
Which of the following is not one of the four decisions about what evidence to gather and how much of it to accumulate in the development of an audit program?
which audit procedures to use
which accounts must agree to the general ledger
when to perform the procedures
what sample size to select for a given procedure
Examine the cash receipts journal in the accounting system and compare the amounts received to the corresponding amounts invoiced in the revenue accounting system and to the bank statement evidencing the deposit. This is an example of which of the following?
audit objective
audit program
audit assertion
audit procedure
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.
