chap 6 setting audit objectives

Question 1

Audit objectives for each class of transactions include what 3 objectives?

Answer 1

1.Transaction-related audit objectives 2.Balance-related audit objectives 3.Presentation and disclosure-related audit objectives

Question 2

Auditors conduct FS audits using the cycle approachby performing tests of what two areas?

Answer 2

1. audit tests of the transactions amking up ending balances 2. audit tests of the account balances and related disclosure

Question 3

audit objectives that relate to the presentation and disclosure of information in the FSs

Answer 3

presentation and disclosrue related audit objectives

Question 4

The most efficient way to conduct audits is to ?

Answer 4

obtain some combination of assurance for each class of transactions and for the ending balances in the related accounts.

Question 5

for any given class of transactions, several audit objectivies must be met before the auditor can conclude that the transactions are recorded properly. these are called what?

Answer 5

transaction related audit objectives

Question 6

what is a blance related audit objective?

Answer 6

audit objectives that must be met for each account balance

Question 7

in almost all audits, overall assurance can be increased by not only auditing the transactions that make up the ending balance of an account but to also audit what?q

Answer 7

the ending balances of the account

Question 8

what are presentation and disclosrue related audit objectives?

Answer 8

audit objectives that relate to the presentation and disclosure of information in the FSs

Question 9

audit objectives that must be met for each account balance are called?

Answer 9

blance related audit objective

Question 10

what are transaction related audit objectives?

Answer 10

audit objectivies must be met before the auditor can conclude that the transactions are recorded properly. these are different for each class of transactions