AUE1501 Assignment 3 2023 Semester 2 (ANSWERS)

AUE1501 Assignment 3 2023 Semester 2 (ANSWERS) Question 1 Not yet answered Marked out of 1.00 Flag question Question text Indicate whether the following statement is True or False. The relevance in audit evidence refers to the source and nature of the audit evidence. True False Question 2 Not yet answered Marked out of 1.00 Flag question Question text The auditor performs certain steps during the risk assessment process. Identify the correct statement pertaining to the overall risk assessment process. a. Collecting audit evidence occurs before the areas of material misstatements are identified. b. The very first step in the risk assessment process is to identify the areas of material misstatements. c. Materiality has to be determined first before the audit procedures can be planned and the sample sizes determined. d. During the evaluation of audit evidence, the auditor identifies problems. The next step to be followed by the auditor is to conclude. Clear my choice Question 3 Not yet answered Marked out of 1.00 Flag question Question text The auditor starts off by selecting a transaction in the sales journal and then inspects the source documents, namely the sales invoice and delivery note. The direction of this test, is the first step in achieving the ….. assertion. a. completeness b. occurrence c. accuracy d. cut-off Clear my choice Question 4 Not yet answered Marked out of 1.00 Flag question Question text The term audit evidence is an important auditing concept. Identify the correct statement regarding audit evidence. a. Reliable audit evidence refers to the quantity of audit evidence. b. Sufficient audit evidence refers to the quality of audit evidence. c. Appropriate audit evidence means that the evidence must be both reliable and relevant. d. Relevant audit evidence means that the auditor attempts to obtain evidence from the most trustworthy and dependable source possible. Clear my choice Question 5 Not yet answered Marked out of 1.00 Flag question Question text When an auditor inspects a delivery note to establish whether a signature is present acknowledging receipt of the goods delivered, the auditor is focussing on a particular assertion. Identify the correct assertion. a. Accuracy b. Occurrence c. Cutoff d. Completeness Clear my choice Question 6 Not yet answered Marked out of 1.00 Flag question Question text Select the stage that the auditor will attend to the task at hand for the first time. The auditor realises that the valuation of a stockpile of coal will require a specialist. a. Concluding stage b. Planning stage c. Responding to assessed risk stage d. Preliminary engagement stage Clear my choice Question 7 Not yet answered Marked out of 1.00 Flag question Question text Indicate whether the following statement is True or False The auditor evaluates and tests the internal controls of a business and concludes that the internal controls are very effective. Therefore, the auditor is not required to perform any substantive procedures. Select one: True False Question 8 Not yet answered Marked out of 1.00 Flag question Question text The auditor is establishing an overall audit strategy that sets the scope, timing and direction of the audit. Identify the stage of the audit process when this aspect is considered. a. Planning stage. b. Concluding stage. c. Responding to assessed risk. d. Preliminary stage. Clear my choice Question 9 Not yet answered Marked out of 1.00 Flag question Question text Select the incorrect statement pertaining to the audit concept, further audit procedures. a. Substantive procedures and tests of controls are the two main classes of further audit procedures. b. When tests of control indicate that the system of internal controls are fully functional, then no further audit needs to be performed. c. Inspection, observation, inquiry, external confirmation are all examples of the types of further audit procedures. d. An audit procedure must be clearly formulated as an instruction and must not include vague terms like check the delivery notes. Clear my choice Question 10 Not yet answered Marked out of 1.00 Flag question Question text Indicate whether the following statement is True or False. The reason why the auditor uses assertions in terms of ISA 315, is to consider the different types of potential misstatements that may occur. Assertions for which the auditor has identified related risks of material misstatements are relevant assertions. Select one: True False Finish attempt ... Previous activityAssessment