Audit Section 3 Flashcards
Is record of electronic funds transfers an accounting record
yes
is a contract an accounting record
yes
general & sub ledgers are what type of record
accounting record
Quantity of evidence is affected by ___
RMM
The higher the quality of evidence, the lower the ____ of evidence
quantity
Reliability of audit evidence is influenced by its ____ and its ____
source and nature
Difficulty and ___ is not a factory for omitting an audit procedure when on appropriate alternative is available
expense
Obtaining an understanding of entity and its environment including I/C is known as what
risk assessment procedures
Is risk assessment judgmental
yes
What is an integrated audit
an audit of I/C & F/S combined together (issuers only)
For issuers, does mangement have to provide an annual report on I/C over financial reporting?
yes
Management must disclose whether material weaknesses are present or whether or not I/C over financial reporting is effective in a report on I/C over F/R?
Yes
If a material weakness exists, can management conclude that I/C is effective
no
In an audit over F/R, the auditor should evaluate whether ____ sufficiently address RMM due to fraud and controls intended to address risk of management override
controls
____ are very effective to determine the effectiveness of design of controls
walk-through
Length of time during the audit period the auditor is relying on the operating effectiveness of controls is a factor for the auditor to consider to determine extent of test of controls
true
Auditor should test teh person performing the control possesses the necessary ___ and ___ to perform the control effectively
authority and competence
If controls haven’t changed, an auditor should test a control every ____
3 years
Can auditors rely on audit evidence from controls that have changed
no
The greater the rate of deviation from a control increases the ____
auditor should increase the extent of testing a control
For a review of an issuer, should hte accountant understand the I/C?
Yes
Two types of sampling
statistical and nonstatistical
The sufficiency of audit evidence is related to the ____ and ___ of an audit sample
design and size
What type of of risk is human error: Sampling risk or nonsampling risk
nonsampling risk