CHAPTER 10

Question 1

The auditor is required to retain audit documentation

Answer 1

For a period sufficient to meet the needs of his or her practice and to satisfy any applicable legal or regulatory requirements, but not less than 5 year.

Question 2

What is a true statement in regards to observation in the audit technique?

Answer 2

it is the most persuasive about the performance of a process. However it is limited to that moment in time that the observation takes place.

Question 3

The presumption that is correct about the reliability of audit evidence is?

Answer 3

The more effective the internal control, the more reliable the evidence generated internally by the entity.