Section 3 Flashcards
Learn how to do an internal audit
This information means that it factual. adequate, and convincing so that a prudent, informed person would reach the same conclsions as the audiitor.
a. Reliable Information
b. Sufficient Information
c. Relvant Information
d. useful information
b. sufficient Information
What type of informatoion must an internal auditor collect?
Those information that directlyy relates to the engagement.
This information is the besst attainable through the use of appropriate engagement techniques.
a. Reliable Information
b. Sufficient Information
c. Relvant Information
d. useful information
a. Reliable Information
An information that internal auditors should identify in order to achieve the engagement’s objective must have the following, except:
a. classification
b. sufficiency
c. reliability
d. being relevant and useful
a. classification
What is the meaning of tangential information?
This means that an information is not part of a whole.
note: This type of information can only be used when it DIREECTLY affects the engagements
What is the meaning of tangential information?
This means that an information is not part of a whole.
note: This type of information can only be used when it DIREECTLY affects the engagements
What are samples of tangential information?
- search
Which of the following are sources of information in auditing.
I. Auditor himself II. External Information III. Internal-External Information IV. External-Internal Information V. Internal Information VI. Third Party Information
a. I, II, III, V, VI
b. I, II,III
c. II, IV, V
d. I, II, III, IV, V
d. Auditor, external, internal-external. external-internal, internal
Determine the level of reliability of the sources of information: AUDITOR
a. reliable
b. most reliable
c. least reliable
b. most reliable
What does internal-external information mean?
a. These informaion is directly given by a 3rd party to the auditor.
b. An information generated by a 3rd party and then processed by a client.
c. An information that is generated by and remains with the client.
d. An information that is generated by the client and processed by a 3rd party.
d. An information that is generated by the client and processed by a 3rd party.
What is an External information?
a. These informaion is directly given by a 3rd party to the auditor.
b. An information generated by a 3rd party and then processed by a client.
c. An information that is generated by and remains with the client.
d. An information that is generated by the client and processed by a 3rd party.
a. These informaion is directly given by a 3rd party to the auditor.
What is an internal information?
a. These informaion is directly given by a 3rd party to the auditor.
b. An information generated by a 3rd party and then processed by a client.
c. An information that is generated by and remains with the client.
d. An information that is generated by the client and processed by a 3rd party.
c. An information that is generated by and remains with the client.
What is an external-internal information?
a. These informaion is directly given by a 3rd party to the auditor.
b. An information generated by a 3rd party and then processed by a client.
c. An information that is generated by and remains with the client.
d. An information that is generated by the client and processed by a 3rd party.
b. An information generated by a 3rd party and then processed by a client.
Rank the sources of audit evidence listed down from highest to lowest in terms of their reliability and persuasiveness.
i. Physical examination, confirmations, external documents, reperformance
ii. Internal documentation (internal control systems are absent), inquiries of management and personnel, analytical procedures when data is not adequate.
iii. Internal documentation (internal control systems are present), obsercations, analytical procedures with adequate data.
a. Medium, Highest, Lowest
b. Highest, Lowest, Medium
c. Lowest, Medium, Highest
d. Medium, Lowest, Highest.
b. Highest, Lowest, Medium
An information that can be trusted by the auditor,
a. Reliability
b. Sufficiency
c. Relevance
d. Usefulness
a. reliability
This characteristic of an information means that it coincides with the item being audited is.
a. Reliability
b. Sufficiency
c. Relevance
d. Usefulness
c. Relevance
This type of audit evidence is done through an inspection or observation of a tangible asset and this is usually followed by a corroborative evidence since this is not sufficient by itself.
a. Confirmation or representations by external source
b. Physical Examination
c. External documentation
d. Observation
b. Physical Examination
This type of audit evidence is done by observing the activity or the facility.
a. Confirmation or representations by external source
b. Physical Examination
c. External documentation
d. Observation
d. Observation
An examination of documents and records that have been created by a third-party, and those documents and records that have been prepared by the organization but are kept outside the organization.
a. Confirmation or representations by external source
b. Physical Examination
c. External documentation
d. Observation
c. External documentation
Is a written or oral response that is obtained directly from the external source, is what type of audit evidence?
a. Confirmation or representations by external source
b. Physical Examination
c. External documentation
d. Observation
a. Confirmation or representations by external source
An examination of documents and records here the document is prepared and used within the organization (Vouching) and its level of in the hierarchy of audit evidence persuasiveness is medium (2).
a. Analytical procedures with adequate data
b. Internal documentation (under a strong internal control system)
c. internal documentation (where strong internal control system are absent)
d. Inquiries of management and personnel
b. Internal documentation (under a strong internal control system)
An examination of documents and records where the document is prepared and used within the organization (vouching) and this is one of the lowest in the hierarchy of persuasiveness.
a. Analytical procedures with adequate data
b. Internal documentation (under a strong internal control system)
c. internal documentation (where strong internal control system are absent)
d. Inquiries of management and personnel
c. Internal documentation (where strong internal control system are absent)
This uses comparisons and relationships to determine whether account balances appear reasonable.
a. Analytical procedures with adequate data
b. Internal documentation (under a strong internal control system)
c. internal documentation (where strong internal control system are absent)
d. Inquiries of management and personnel
a. Analytical Procedures with adequate data
This type of audit evidence is acquired through the use of questionnaire or intervews. This is less reliable because it is less competent, lacks objectivity, and is not free from bias.
a. Analytical procedures with adequate data
b. Internal documentation (under a strong internal control system)
c. internal documentation (where strong internal control system are absent)
d. Inquiries of management and personnel
d. Inquiries of management and personnel
NOTE: This is the least reliable type of audit evidence
TAKE NOTE 1:
- Analytical procedures when data is not adequate.
