WorksheetsAudit Evidence - Part 1
Total questions: 15
Worksheet time: 8mins
Which one of the following would be considered the most reliable type of audit evidence?
Purchase orders from vendors.
Customer accounts receivable files.
Computerized general ledger.
Confirmations from banks.
Which one of the following would be the most reliable type of evidence?
Photocopies.
Indirectly obtained evidence.
Observation of assets.
Inquiry with the in-house attorney.
Which one of the following would be the least reliable type of evidence?
Confirmations returned by bank directly to the auditor.
Letters of communication from the Securities Exchange Commission.
Physical examination of perpetual inventory.
Evidence from an easily overridden information system.
An example of an external document would include which of the following?
Vendor invoices.
Customer orders.
Confirmation replies from customers.
All the above.
Which of the following is an example of inspection of documentation?
Review shipping documents.
Estimate the expected amount of interest income.
Observe controls.
Recalculate the total amount include on a sales invoice.
The process of vouching helps establish which of the following regarding recorded transactions?
Transactions have been recorded.
Transactions are complete.
Transactions are valid.
Transactions are presented properly.
Footing, cross-footing, and tests of extensions are examples of which approach to gathering evidence?
Reprocessing.
Recalculation.
Vouching.
Examination of documentation.
Reprocessing of transactions helps establish that all valid items have been recorded. Reprocessing tests which of the following assertions?
Occurrence.
Rights.
Existence.
Completeness.
External documentation may lack reliability. Which of the following is the most probable reason for that?
The external party may be competent in performing duties.
The documentation may be properly understood by the client in the response.
The auditor may decide not to use the documentation and replace it with other documents.
The documentation may have been altered if the process is not controlled from inception.
An auditor selects a sample of items recorded and traces them back to the supporting documentation. This is an example of which of the following?
Directional testing for existence.
Directional testing for completeness.
Direct testing for valuation.
Direct testing for rights.
Which of the following assertions is the primary assertion that is satisfied by physically observing the client's count of inventory?
Rights.
Valuation.
Completeness.
Existence.
When using the audit procedure vouching, the auditor is primarily concerned with which of the following assertions?
Completeness.
Existence.
Authorization.
Classification.
Observation suffers from which of the following limitations?
Observation of processing is rarely unobtrusive.
Observation of processing on one day does not necessarily indicate how transactions were processed on a different day.
All the above.
None of the above.
An audit program is created to specify which of the following?
The type of audit opinion to be rendered based upon procedures performed.
The audit procedures that will be performed every year for the client.
How an auditor should think while performing audit procedures.
Audit objectives and procedures to be followed during the audit process.
Conclusions are typically documented by auditors in which type of work paper?
Audit planning memo.
Audit program.
Audit memoranda.
Representation letter.
