Chapter 3 (Audit evidence)

Question 1

briefly describe how an auditor evaluates the sufficiency of audit evidence

Answer 1

Chap 3 LO:1

Question 2

state any four factors which the auditor should consider to ensure reliability of audit evidence

Answer 2

Chap 3 LO:1

Question 3

discuss the factors that influence the auditors judgment as to what constitutes sufficient appropriate audit evidence

Answer 3

Chap 3 LO:1 (both sufficiency and appropriateness)

Question 4

define relevance in context of audit evidence

Answer 4

Chap 3 LO:1

Question 5

briefly explain any six methods for collecting audit evidence

Answer 5

Chap 3 LO:2

Question 6

define risk assessment procedures with examples

Answer 6

Chap 3 LO:3

Question 7

define risk at financial statement level, and also give four examples, and how to response at this level

Answer 7

Chap 3 LO:3

Question 8

define risk at assertion level, and also give four examples, and how to response at this level

Answer 8

chap 3 LO:3

Question 9

define tests of controls

Answer 9

chap 3 LO:4 (Objectives)

Question 10

list the two general types of substantive procedures

Answer 10

chap 3 LO:5 Analytical procedures and test of details

Question 11

state types of misstatements that could occur in an area of financial statements

Answer 11

chap 3 LO:6 Assertions

Question 12

define assertions of financial statements

Answer 12

chap 3 LO:6

Question 13

list the purpose of audit working papers

Answer 13

chap 3 LO:7 both primary and additional

Question 14

who is the owner of working papers? can working papers be a substitute to the accounting records of a company

Answer 14

chap 3 LO:7

Question 15

list any six advantages of using computer based audit working papers

Answer 15

chap 3 LO:7

Question 16

briefly describe various types of audit files ad state at least five contents of each type of audit file maintained by an audit firm (08)

Answer 16

chap 3 LO:8

Question 17

identify the factors that the auditor should consider while determining the form, content and extent of audit working papers.

Answer 17

chap 3 LO:9

Question 18

list the information that should be included on every working paper prepared in connection with the audit of the financial statements.

Answer 18

chap 3 LO:9

Question 19

how an auditor should prepare sufficient audit documentation to enable an experienced auditor, having no previous connection with the audit, to conclude that audit documentation has been done in accordance with ISA-230, audit documentation

Answer 19

chap 3 LO:9

Question 20

explain the requirements of ISA , audit documentation relating to assembly of the final audit file after the date of auditor’s report in respect of:

(1) time limit to compete the assembly of the final audit file
(2) nature of the procedures allowed during assembly of the final audit fie.
(3) examples of such procedures that can be performed during assembly of the final audit file.

Answer 20

chap 3 LO:10

Question 21

if exceptional circumstances arise after auditor’s report what documents auditor shall include in audit file

Answer 21

chap 3 LO:10