AUDITING

Test Bank for The Audit Process, 8e 8th Edition by Iain Gray, Stuart Manson, Louise Crawford, Lynn Bradley, Lynn Currie. Complete chapters (Chap 1 to 21) test bank are included with answers. 1. Why are auditors needed? 2. An overview of the postulates and concepts of auditing 3. Auditor independence 4. Audit regulation 5. An introduction to corporate governance 6. Risk 7. Evidence 8. Systems work basic ideas 9. Testing and evaluation of systems 10. Substantive testing, CAAT and audi...

Which cycle is not directly linked to the production cycle? a) Acquisition and expenditure cycle. b) Payroll cycle. c) Revenue and collection cycle. d) Finance and investment cycle. - ----Finance and Investment Cycle Which of the following is an internal control weakness for a company whose inventory of supplies consists of a large number of individual items? a) Supplies of relatively little value are expensed when purchased. b) The cycle basis is used for physical counts. c) The...

Which of the following is not one of the four decisions about what evidence to gather and how much of it to accumulate? 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 - B Which of the following is not a characteristic of the reliability of evidence? A) Effectiveness of client internal controls B) Education of auditor C) Independence of information provider D)...

Which Objective? Confirm a sample of receivables by direct communication with the debtors ↝↝- Existence Which Objective? Review confirmations of liabilities to determine if receivables have been sold ↝↝- Right to Assets (Rights and Obligations) Which Objective? Select a sample of sales invoices in the subsequent period, and examine the related shipping documents for date of shipment to ascertain whether some of those shipments at the end of the period were inadvertently n...

Analytical procedures are required as a part of the: -- Procedures performed near the end of an audit In Auditing the balance sheet, most revenue and expense accounts are also audited. Which accounts are most likely to be audited when auditing Accounts Receivable? -- Sales and Bad debt expense Which of the following procedures would most likely be perfumed while evaluating findings at the conclusion of an audit? -- Calculate an estimate the total of uncorrected misstateme...

When are analytical procedures required on an​ audit? What is the primary purpose of analytical procedures during each phase of the​ audit? A. Analytical procedures are required during the completion​ phase, as a final review for material misstatements or financial problems. B. Analytical procedures are required during the planning phase to assist the auditor in determining the​ nature, extent, and timing of work to be performed. C. Analytical procedures help the auditor identify ac...

Contingent Liability - ----Uncertainty which exists for a company that will be resolved by the occurrence of future events. (An existing condition, situation, or set of circumstances, involving an uncertainty as to possible loss to an entity that will ultimately be resolved when some future event occurs or fails to occur.) Subsequent Event - ----An event or transaction which occurs after the balance sheet date but prior to the issuance of the financial statements and the auditor's...

Auditors use procedures for ... ⁋⁋ - risk assessment test of controls evidence about management's assertions Example Assertion: I'm 58 years old ⁋⁋ - Two Assertions 1. Charlie is 58 years old => birth certificate 2. I am Charlie => ID & passport Internal Control Audit Plan ⁋⁋ - a plan that would contain a list of the specific procedures needed to obtain an understanding of the client's internal control system and test that understanding for those controls...

The auditor's responsibilities related to the audit opinion are - -The auditor has an obligation to ensure that users of the financial statements are informed about the misstatement and that the audit opinion should no longer be relied upon. -Ensure the client informs the SEC and other regulatory agencies of the​ misstatement, and issues revised financial statements with an explanation of the reason for the revision. -If the client refuses to disclose the​ misstatement, the auditor sh...

a high but not absolute level of assurance is called answer: - reasonable assurance an audit to determine whether an entity is following specific procedures or rules set down by some higher authority is classified as a answer: - compliance audit an examination of part of an organization's procedures and methods for the purpose of evaluating efficency and effectiveness is what type of audit answer: - operational audit auditors do not provide which of the following answer...