WorksheetsPERFORMING SUBSTANTIVE TESTS
Total questions: 15
Worksheet time: 11mins
As audit evidence, physical examination and confirmation, may only be obtained using which of the following types of tests?
Tests of Control
Tests of Transactions
Analytical Procedures
Tests of Details of Balances
Which of the following audit tests is usually the least costly to perform?
Analytical Procedures
Test of Controls
Tests of Details of Balances
Substantive Tests of Transactions
Evidence is generally considered sufficient when
It is appropriate
There is enough of it to afford a reasonable basis for an opinion on financial statements
It has the qualities of being relevant, objective, and free from uknown bias.
It has been obtained by random selection
During an audit, auditors may employ analytical procedures at any time, nevertheless, they are required to be used at specific time. During which phase(s) of the audit is the auditor primarily concerned with using analytical procedures from a cost-savings perspective?
Planning
Testing
Completion
Auditor has nothing to say about it
Which of the following statements is most correct regarding the primary purpose of audit procedures?
To detect all errors or fraudulent activities as well as illegal activities
To comply with the SEC
To gather corroborative audit evidence about the management's assertions regarding the client's financial statements
To determine the amount of errors in the balance sheet accounts in order to adjust the accounts to actual
The appropriateness of evidence is measured through the
Sufficiency of Evidence
Meaning of Evidence
Quantity of Evidence
Quality of Evidence
Which of the following is true?
Test of Details of Balances focus on the ending balances of accounts
Test of Details of Balances focus on the transactions during the period
Test of Details of Balances focus on the auditor's understanding of internal controls
Test of Details of Balances focus on comparisons of recorded amounts to expectations developed by the auditor
Which of the following tests commonly occur together
Substantive Tests of Transactions and Tests of Controls
Substantive Tests of Transactions and Obtaining an Understanding of Internal Controls
Analytical Procedures and Tests of Controls
All of the above commonly occur together
The use of comparisons and relationships to assess whether account balances or other data appear reasonable compared to the auditor's expectations is a definition of
Analytical Procedures
Tests of Transactions
Tests of Balances
Tests of Controls
A procedure designed to test for monetary misstatements directly affecting the correctness of financial statement balances is a
Test of Controls
Substantive Tests
Test of Attributes
Monetary Unit Sampling Test
Which portion of an audit is least likely to be completed before the balance sheet date?
Tests of Controls
Issuance of an Engagement Lette
Substantive Procedures
Assessment of Control Risk
The primary objective of tests of details of transactions performed as substantive procedures is to
Comply with generally accepted auditing standards
Attain assurance about the reliability of the accounting system
Detect Material Misstatement in the Financial Statements
Evaluate whether management's policies and procedures are operating effectively
In the context of an audit of financial statements, substantive tests are audit procedures that
May be eliminated under certain conditions
Are designed to discover significant subsequent events
May be either tests of transactions, direct test of financial balances or analytical tests
Will increase proportionately with the auditor's assessment of control risk
Evidence is usually more persuasive for balance sheet accounts when it is obtained
As close to the Balance Sheet date as possible
Only from transactions occurring on the balance sheet date
From various times throughout the client's year
From the time period when transactions in that account were most numerous during the fiscal period
Auditors may decide to replace tests of details with analytical procedures when possible because the
Analytical Procedures are more reliable
Analytical Procedures are considerably less expensive
Analytical Procedures are more persuasive
Tests of Details are more difficult to interpret
