Audit Exam II ACTUAL QUESTIONS AND CORRECT ANSWERS

Audit Exam II ACTUAL QUESTIONS AND
CORRECT ANSWERS
Audit Procedure - CORRECT ANSWERS 1.
Inspection of Documents
2. Inspection of assets
3. Observations
4. External Confirmations
5. Recalculation
6. Reperformance
7. Analytical Procedure
8. Scanning
9. Inquiry


MGMT Assertions - CORRECT
ANSWERS 1. Evaluation
2. Completeness

,3. Rights/Obligations
4. Valuation
5. Presentation and Disclosure


Process for Performing Analyitical Procedures -
CORRECT ANSWERS 1. Determine
suitability
2. Evaluate data reliability
3. Develop an expectation
4. Determine amount of acceptable difference
5. Compare expectation with client's recorded
amount
6. Investigate significant unexpected differences
(quantify and corroborate)
7. Document

,Types of Analytical Procedures - CORRECT
ANSWERS Trending
Ratio
Scanning
Reasonableness
Regression


Documentation - CORRECT ANSWERS 1.
Procedures and Risk Assessment
2. Audit work performed
3. Significant issues and resolutions


Quality of Work Paper - CORRECT
ANSWERS 1. Clients Name/Explanatory
Title/Bal Sheet Date
2. Initials/Electronic Signature

, 3. Page number
4. Description of performance


Why is the appropriateness of audit evidence
obtained by the auditor important in forming
an audit opinion?
Describe the qualities information should have
to be considered appropriate by the auditor. -
CORRECT ANSWERS Appropriateness is a
measure of the quality of evidence. Audit
evidence that is considered appropriate
contains the characteristics of relevance and
reliability.


Relevant evidence refers to the assertion being
tested.