Day 7

Question 1

Audit procedure: Understandability of Presentation and Classification - Inventory

Answer 1

Confirming inventories pledged under loan agreements

Question 2

During the planning phase of an audit. When are inquires used?

Answer 2

1. The auditor may perform both internal and external inquires
2. Inquires are used extensively as an audit procedure
3. Inquires are generally used in conjunction with other audit procedures

Question 3

What should the auditor do when subsequently discovered facts are revealed after the report release date? Nonissuer

Answer 3

Auditor should talk with Mgmt and determine if the FS need to be revised and how Mgmt plans to fix them.

Question 4

What should the auditor do to the WPS if the risk assessment needs revision after audit procedures?

Answer 4

The NEW assessment and the ORIGINAL should be documented and kept in the audit WPS

Question 5

The audit plan CANNOT be finalized until the:

Answer 5

Consideration of the Entity’s Internal Control has been completed

Question 6

ORAL explanations from Mgmt - Is this sufficient support / audit documentation

Answer 6

NO - Oral explanations alone are NOT sufficient appropriate audit WPS