AUDITING - CHAPTER 5 QUESTIONS
AND CORRECT SOLUTIONS
Which of the following types of audit evidence is the least reliable?
- Bank statements obtained from the entity.
- Correspondence from the entity's attorney about litigation.
- Test counts of inventory performed by the auditor.
- Prenumbered purchase order forms prepared by the entity. ANSW✅✅Prenumbered purchase
order forms prepared by the entity.
Audit evidence can come in different forms with different degrees of reliability. Which of the
following is the most persuasive type of evidence?
- Prenumbered entity sales invoices.
- Vendors' invoices included in the entity's files.
- Bank statements obtained from the entity.
- Computations made by the auditor. ANSW✅✅Computations made by the auditor.
An auditor would be least likely to use confirmations in connection with the examination of
ANSW✅✅refundable income taxes.
The assurance bucket is filled with all of the following types of evidence except:
- substantive analytical procedures.
- tests of details.
- the audit report.
- test of controls. ANSW✅✅the audit report.
The current file of the auditor's working papers should generally include ANSW✅✅a copy of the
financial statements.
AND CORRECT SOLUTIONS
Which of the following types of audit evidence is the least reliable?
- Bank statements obtained from the entity.
- Correspondence from the entity's attorney about litigation.
- Test counts of inventory performed by the auditor.
- Prenumbered purchase order forms prepared by the entity. ANSW✅✅Prenumbered purchase
order forms prepared by the entity.
Audit evidence can come in different forms with different degrees of reliability. Which of the
following is the most persuasive type of evidence?
- Prenumbered entity sales invoices.
- Vendors' invoices included in the entity's files.
- Bank statements obtained from the entity.
- Computations made by the auditor. ANSW✅✅Computations made by the auditor.
An auditor would be least likely to use confirmations in connection with the examination of
ANSW✅✅refundable income taxes.
The assurance bucket is filled with all of the following types of evidence except:
- substantive analytical procedures.
- tests of details.
- the audit report.
- test of controls. ANSW✅✅the audit report.
The current file of the auditor's working papers should generally include ANSW✅✅a copy of the
financial statements.
