AUD 5 Flashcards
An advantage that using statistical sampling has over nonstatistical sampling is that statistical sampling helps an auditor to
Measure the sufficiency of the evidential matter obtained.
An auditor who wishes to capture an entity’s data as transactions are processed and continuously test the entity’s computerized information system most likely would use which of the following techniques?
embedded audit module
Which of the following computer-assisted auditing techniques processes client input data on a controlled program under the auditor’s control to test controls in the computer system?
parallel simulation
Processing data through the use of simulated files provides an auditor with information about the operating effectiveness of control policies and procedures. one of the techniques involved in this approach makes use of:
integrated test facility
An auditor using audit software probably would be LEAST interested in which of the following fields in a computerized perpetual inventory file?
economic order quantity
An auditor would least likely use computer software to
Assess EDP control risk. This is a matter of audit judgement.
A primary advantage of using generalized audit software packages to audit the financial statements of a client that uses an EDP system is that the auditor may:
access information stored on computer file while having limited understanding of the clients hardware and software features.
which of the following is correct concerning EDI systems
preventative controls are generally more important than detective controls in EDI systems
which of the following distinguishes EDI from other forms of electronic commerce?
EDI transactions are formatted using standards that are uniform worldwide
which of the following is an essential element of the audit trail in an EDI system?
activity logs that indicate failed transactions
which of the following strategies would a CPA most likely consider in auditing an entity that processes most of its financial data only in electronic form, such as a paperless system?
continuous monitoring and analysis of transaction processing with an embedded audit module
when the financial statements contain a departure from GAAP because, due to unusual circumstances, the statements would otherwise be misleading, the auditor should explain the unusual circumstance in a separate paragraph and express an opinion that is
UNMODIFIED
If an auditor is satisfied that there is only a remote likelihood of a loss resulting from the resolution of a matter involving an uncertainty, the auditor should express a(n):
UNMODIFIED OPINION
the group engagement partner decides not to refer to the audit of a component auditor who audited a subsidiary of the group auditor’s client. After making inquiries about the component auditor’s professional reputation and independence, the group engagement partner would most likely
Contact the component auditor and review the audit programs and documentation pertaining to the subsidiary
An auditor was unable to obtain audited financial statements or other evidence supporting an entity’s investment in a foreign subsidiary. Between which of the following opinions should the entity’s auditor choose?
Qualified and disclaimer
