Audit Chapter 7 Multiple Choice 100% VERIFIED A+ GRADED

Audit Chapter 7 Multiple Choice 100% VERIFIED A+ GRADED 1) Which of the following is an accurate statement regarding audit evidence? A) Responses to the auditor's questions by client employees are considered highly persuasive evidence. B) Audit evidence should provide an absolute level of assurance. C) The auditor uses evidence to determine whether the statements are fairly presented. D) All evidence must be highly persuasive. - ANS Answer: C 3) An ________ is the detailed instruction that explains the audit evidence to be obtained during the audit. A) audit objective B) audit procedure C) audit assertion D) audit program - ANS Answer: B 4) 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? A) which audit procedures to use B) which accounts must agree to the general ledger C) when to perform the procedures D) what sample size to select for a given procedure - ANS Answer: B 5) When making audit evidence decisions, A) the auditor decides which items in the population to test before determining the sample size. B) the sample size for any given procedure must remain constant from audit to audit. C) audit engagement software can assist the auditor in making evidence decisions. D) the auditor is required to use the sample sizes that are determined by the PCAOB. - ANS Answer: C 6) 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? A) audit objective B) audit procedure C) audit assertion D) audit program - ANS Answer: B