Evidence Accumulation and Evaluation Flashcards

1
Q

All the information used by the aduitor in arriving at the conclusions on which the audit opinion is based–includes info contained in accounting records and other information

A

Audit evidence

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2
Q

Type of evidence collection procedure that includes procedures such as inspecting assets, confirming receivables and observing the counting of inventory

A

Search and verification procedures

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3
Q

Type of evidence collection procedure that includes discussions with firm representatives and analytical procedures such as ratio analysis

A

Internal inquiry and comparision procedures

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4
Q

Type of accounting engagement that offeres the highlest level of assurance

A

Examination (an audit is an examination of financial statements)

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5
Q

A measure of the quanitty of audit evidence that should be obtained

A

Sufficient

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6
Q

a measure of hte quality of audit evidence that should be obtained–measured by its relevance and reliability

A

Appropriate

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7
Q

An audit procedure used to obtain an understanding of the entity and its environment, including its internal control

A

Risk assessment procedures

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8
Q

Audit procedure used, when necessary, or when the auditor has decided to do so, used to test the operating effectivenss of controls at the relevant assertion level

A

Test of controls

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9
Q

Audit procedure usedto detect material misstatemensts in trnasactions, account balances, and disclosures. Include analytical procedures and test of details

A

Substantive prcoedures–used to restrict detection risk

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10
Q

A substantive procedures that consists of evaluations of financial information made by a study of plausible relationships among financial and nonfinancial data
–REQUIRED during risk assessment and near the end of hte audit, but NOT required as a substantive procedure (even though it’s one type that may be used)

A

Analytical procedures

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11
Q

Substantive procedure used to examine the acutal details making up the various account balances and disclosures

A

Test of details

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12
Q

A listing of ledger accounts with current year-end balances, with columns for adjusting and reclassifying entries as well as for final balnces for hte current year

A

Working trial balance

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13
Q

Schedules that summarize like accounts, thetotal of which istypically transferred to hte working trial balance

A

Lead schedule

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14
Q

The combination of numbers and/or leggers given to a workpaper page for identifcationand organization purposes

A

Index

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15
Q

Files that contain corroborating information pertaining to the current year’s audit program (ex. cash confirmation)

A

Current workpaper files

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16
Q

Files taht contain information that is expeted to be used bytheauditor on many future audits of a client

A

permanent workpaper files

17
Q

No deletions of audit documentation are allowed after this date

A

Documentation completion date

18
Q

A form of fraud that overstates cash by causing it to be simultaneously included in 2 or more bank acounts–possible because a check takes several days to clearthe bank

19
Q

shows the dates of all transfers of cash among the client’s various bank accounts–primary purpose is to help auditors detect kiting

A

Bank transfer schedule

20
Q

A bank statement for hte first 8-10 business days after year-end–primary purpose is to help auditors verify reconciling items on the year-end bank rec

A

Bank cutoff statements

21
Q

A form used by auditors to obtain informtion from financial instuttions by requesting informtion on deposit and loan balances–designedto substantiate evidence primarily on the existence assertion

A

Standard confirmation form

22
Q

Deposits that have been sent to the bank prior to year-end but have not been received by the bank as of year-end

A

Deposits in transit

23
Q

A transaction in which a customer agrees to purchase goods but hte seller retains physical posession until the customer requests shipment to designated locations–should not be included in revenue

A

Bill and hold transactions

24
Q

Agreements usedto alterhte terms and conditions of recorded sales transactions, often toconvince customers to accept delivery of goods and services–may preclude revenue recognition

A

Side agreements

25
A marketing practice that wsuppliers sometimes use to boost sales by inducing distributors to buy substantially more inventory than they can promptly sell--may result in need to increase the level of anticipated sales returns
Channel stuffing (trade loading)