audit exam 2 with correct answers ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
Which of the following sources of evidence are more reliable?
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
1. Inquiry of an accounts receivable clerk regarding the accounts
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
receivable balance - or - accounts receivable confirmations sent
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
to a sample of customers ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
2. Physical examination of lumber inventory performed by the
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
external auditor - or - physical examination of inventory ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
performed by internal auditors - correct answers✔✔1. Accounts ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
receivable confirmations sent to a sample of customers.
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
2. Physical examination of lumber inventory performed by the
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
external auditor. ||\\||\\
Consider the "assurance bucket" analogy. Why are some of the ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
buckets larger than others for particular assertions or accounts?
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
- correct answers✔✔
||\\||\\ ||\\||\\
,The primary objective of final analytical procedures is to:
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
A. Obtain evidence from details tested to corroborate particular
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
assertions
B. Identify areas that represent specific risks relevant to the
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
audit
C. Assist the auditor in assessing the validity of the conclusions
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
reached on the audit ||\\||\\ ||\\||\\ ||\\||\\
D. Satisfy doubts when questions arise about an entity's ability
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
to continue in existence - correct answers✔✔C. Assist the
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
auditor in assessing the validity of the conclusions reached on
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
the audit ||\\||\\
quiz week 7 - correct answers✔✔ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
Tracing is used primarily to test which of the following
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
assertions about classes of transactions? ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
a. classification
||\\||\\
b. occurrence
||\\||\\
c. cutoff
||\\||\\
, d. completeness - correct answers✔✔d. completeness
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
audit evidence includes only written information used by the
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
auditor in arriving at an opinion about the fairness of financial ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
statements. - correct answers✔✔False ||\\||\\ ||\\||\\ ||\\||\\
the audit working papers belong to
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
a. the audit firm
||\\||\\ ||\\||\\ ||\\||\\
b. the company under audit
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
c. the government
||\\||\\ ||\\||\\
d. they are public record documents - correct answers✔✔a. the
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
audit firm ||\\||\\
to test for unsupported entries in the ledger, the direction of
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
audit testing should start from the
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
a. original source documents
||\\||\\ ||\\||\\ ||\\||\\
b. sales invoices for shipping documents
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
c. externally generated documents
||\\||\\ ||\\||\\ ||\\||\\
Which of the following sources of evidence are more reliable?
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
1. Inquiry of an accounts receivable clerk regarding the accounts
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
receivable balance - or - accounts receivable confirmations sent
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
to a sample of customers ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
2. Physical examination of lumber inventory performed by the
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
external auditor - or - physical examination of inventory ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
performed by internal auditors - correct answers✔✔1. Accounts ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
receivable confirmations sent to a sample of customers.
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
2. Physical examination of lumber inventory performed by the
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
external auditor. ||\\||\\
Consider the "assurance bucket" analogy. Why are some of the ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
buckets larger than others for particular assertions or accounts?
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
- correct answers✔✔
||\\||\\ ||\\||\\
,The primary objective of final analytical procedures is to:
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
A. Obtain evidence from details tested to corroborate particular
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
assertions
B. Identify areas that represent specific risks relevant to the
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
audit
C. Assist the auditor in assessing the validity of the conclusions
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
reached on the audit ||\\||\\ ||\\||\\ ||\\||\\
D. Satisfy doubts when questions arise about an entity's ability
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
to continue in existence - correct answers✔✔C. Assist the
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
auditor in assessing the validity of the conclusions reached on
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
the audit ||\\||\\
quiz week 7 - correct answers✔✔ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
Tracing is used primarily to test which of the following
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
assertions about classes of transactions? ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
a. classification
||\\||\\
b. occurrence
||\\||\\
c. cutoff
||\\||\\
, d. completeness - correct answers✔✔d. completeness
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
audit evidence includes only written information used by the
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
auditor in arriving at an opinion about the fairness of financial ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
statements. - correct answers✔✔False ||\\||\\ ||\\||\\ ||\\||\\
the audit working papers belong to
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
a. the audit firm
||\\||\\ ||\\||\\ ||\\||\\
b. the company under audit
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
c. the government
||\\||\\ ||\\||\\
d. they are public record documents - correct answers✔✔a. the
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
audit firm ||\\||\\
to test for unsupported entries in the ledger, the direction of
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
audit testing should start from the
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
a. original source documents
||\\||\\ ||\\||\\ ||\\||\\
b. sales invoices for shipping documents
||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\ ||\\||\\
c. externally generated documents
||\\||\\ ||\\||\\ ||\\||\\
