Module 17 - Audit Process: Evidence

Question 1

What are detailed assertions required for?

Answer 1

To focus the work of the auditor

And to clearly demonstrate the work performed

Question 2

Assertions for balances

Answer 2

Existence

Completeness

Accuracy, valuation and allocation

Classification

Right and obligations

Presentation

Question 3

Assertions for transactions

Answer 3

Accuracy

Cut-off

Occurrence

Completeness

Classification

Presentation

Question 4

Diagram for sufficient, appropriate evidence

Question 5

Does the auditor have to consider the relevancy and reliability of data to be used in ADA tools?

Answer 5

Yes

Question 6

Are there a number of example procedures the auditor may perform in order to gain assurance over the reliability of a dataset?

Answer 6

Yes

Question 7

Audit sampling is used by auditors to ensure what?

Answer 7

Efficient and effective audit

Question 8

Ways of selecting items to test include:

Answer 8

Selecting the entire population (100% examination)

Selecting specific items based on judgement

Audit sampling

Question 9

For collection of audit evidence

The decision regarding the selection of approach will be determined by:

Answer 9

The characteristics of the population

The ROMM

Audit efficiency

Question 10

Can the auditor choose to use analytical procedure when performing substantive testing?

Answer 10

Yes

Question 11

Analytical procedure techniques are commonly used as follows?

Answer 11

Comparison

Ratio analysis

Reasonableness tests

Trend analysis

Large and unusual items review

Question 12

Analytical procedure techniques predominantly used in planning:

Answer 12

Comparison

Ratio analysis

Reasonableness tests

Question 13

Analytical procedure techniques commonly used in substantive testing:

Answer 13

Trend analysis

Large and unusual items review

Question 14

Steps for performing substantive analytical procedures:

Answer 14

Form an expectation

Compare the expectation to actual

Investigate and substantiate differences

Conclude

Question 15

Testing techniques

Inspection of records or documents

Used for tests of controls?

Used for substantive procedures?

Answer 15

Yes

Yes

Question 16

Testing techniques

Inspection of tangible assets

Used for tests of controls?

Used for substantive procedures?

Answer 16

No

Yes

Question 17

Testing techniques

Confirmation from a third party

Used for tests of controls?

Used for substantive procedures?

Answer 17

No

Yes

Question 18

Testing techniques

Analytical procedures

Used for tests of controls?

Used for substantive procedures?

Answer 18

No

Yes

Question 19

Testing techniques

Recalculation by the auditor to check mathematical accuracy

Used for tests of controls?

Used for substantive procedures?

Answer 19

No

Yes

Question 20

Testing techniques

Enquiry of client staff

Used for tests of controls?

Used for substantive procedures?

Answer 20

Yes

Yes

Question 21

Testing techniques

Re-performance of controls

Used for tests of controls?

Used for substantive procedures?

Answer 21

Yes

No

Question 22

Testing techniques

Observation of a control

Used for tests of controls?

Used for substantive procedures?

Answer 22

Yes

No