Audit Objectives, Procedures, Evidences and Documentation

Question 1

Identification: Largest account

Answer 1

Inventory and warehousing

Question 2

Enumeration: 3-way matching

Answer 2

Purchase order, receiving report, vendor’s invoice

Question 3

Identification: Who owns the working papers?

Answer 3

Auditor

Question 4

Identification: Days appropriate for auditor to complete the assembly of the financial audit file after the date of the auditor’s report

Answer 4

not more than 60 days

Question 5

FITB: Occurrence deals with potential _

Answer 5

overstatement

Question 6

FITB: Completeness deals with potential _

Answer 6

understatement

Question 7

FITB: Existence deals with potential _

Answer 7

overstatement

Question 8

Identification: Direction of testing is from accounting records to supporting documents

Answer 8

Vouching

Question 9

Identification: Traces supporting documentation to accounting records

Answer 9

Tracing

Question 10

FITB: Vouching tests for potential _

Answer 10

overstatement

Question 11

FITB: Tracing tests for potential _

Answer 11

understatement

Question 12

Identification: When is analytical procedures required?

Answer 12

During planning and completion phase

Question 13

Identification: Period where the auditor is not allowed to delete or discard audit documentation

Answer 13

Not more than 5 years from auditor’s report date

Question 14

Identification: Period required by SEC where the auditor is not allowed to delete or discard audit documentation

Answer 14

10 years from the audit report date