ch4 evidence and reporting

Question 1

Audit evidence is relevant if it proves one of more of the financial statement assertions. what are the assertions about classes of transactions

Answer 1

occurrence
completeness
accuracy
cut-off
classification
presentation

Question 2

assertions about account balances, and related disclosures

Answer 2

existence
rights and obligations
completeness
accuracy, valuation and allocation
classification
presentation

Question 3

evidence for audit must be

Answer 3

sufficient
appropriate

Question 4

is a purchase or sales invoice more reliable

Answer 4

a purchase invoice

Question 5

audit approach includes what

Answer 5

tests of control
substantive testing

Question 6

what does tests of control do

Answer 6

tests the system that gets the numbers into financial statements

Question 7

what does substantive testing do

Answer 7

test numbers in financial statement
involves analytical procedures

Question 8

the auditor should evaluate results based on:

Answer 8

relevance
reliability
sufficiency

Question 9

what 2 audit opinions are there

Answer 9

express opinions
implied opinions

Question 10

what do express opinions involve

Answer 10

opinion on the financial statements are
-true and fair
-properly prepared

opinion on other matter prescribed by Companies Act 2006- the information contained in the directors report and strategic report is consistent with

Question 11

what do implied opinions involve

Answer 11

only arise if material problem arises.

report by exception under CA2006 if any of the following matters arise:

-Returns adequate for our audit have not been received from branches not visited by us
- Accounts are not in agreement with the underlying accounting records
-Proper accounting records have not been kept
-Information and explanations required for the audit were not received
- directors remuneration disclosures required by law were not made

Question 12

what do implied opinions involve

Answer 12

only arise if material problem arises.

report by exception under CA2006 if any of the following matters arise:

-Returns adequate for our audit have not been received from branches not visited by us
- Accounts are not in agreement with the underlying accounting records
-Proper accounting records have not been kept
-Information and explanations required for the audit were not received
- directors remuneration disclosures required by law were not made

Question 13

what are non audit assurance engagements covered by

Answer 13

international standards on assurance engagements (ISAEs)
international standards on review engagements (ISREs)