Chap 7 Audit Evidence

Question 1

In characteristics of evidence, what does the “certainty of conclusions from evidence” mean?

Answer 1

high level of assurance

Question 2

In characteristics of evidence, what does the “typical consequences of incorrect conclusions from evidence” mean?

Answer 2

statement users make incorrect decisions and auditor may be sued

Question 3

In characteristics of evidence, what does the “nature of conclusions (results” mean?

Answer 3

issue one of several alternative types of audit reports

Question 4

What is the foundation of any audit?

Answer 4

the evidence obtained and evaluated by the auditor

Question 5

what is evidence?

Answer 5

any info used by auditor to determine whether the info being audited is stated in accordance with the established criteria .

Question 6

What are the 6 characteristics of evidence?

Answer 6

1. use of evidence- determine whether statements are fairly presented
2. nature of evidence used (what type)- various types of audit evidence generated by the auditor, third parties, and the client
3. party or parties evaluating evidence- Auditor
4. certainty of conclusions from evidence- high level of assurance
5. nature of conclusions (results)- issue one of several alternative types of audit reports
6. typical consequences of incorrect conclusions from evidence- statement users make incorrect decisions and auditor may be sued.

Question 7

In characteristics of evidence, what does the “ party or parties evaluating evidence” mean?

Answer 7

The auditor

Question 8

In characteristics of evidence, what does the “nature of evidence used (what type)” mean?

Answer 8

various types of audit evidence generated by the auditor, third parties, and the client

Question 9

what is an example of less persuasive evidence?

Answer 9

responses to questions of client employees

Question 10

In characteristics of evidence, what does the “use of evidence” mean?

Answer 10

determine whether statements are fairly presented

Question 11

what is an example of highly persuasive evidence?

Answer 11

the auditors count of marketable securities

Question 12

the auditor must have the knowledge and skill to do what?

Answer 12

accumulate sufficient appropriate evidence on every audit to meet the standards of the profession

Question 13

many professions besies auditors use evidence to help them draw what?

Answer 13

conclusions