semi-identification

Question 1

These are control system policies and procedures that relate to the overall computer information system

Answer 1

General Controls

Question 2

It is the measure of the quality of audit evidence and its relevance to a particular assertion and its reliability

Answer 2

Appropriateness

Question 3

This technique requires that the auditor write a program that simulates key features or processes of the program under review.

Answer 3

Parallel Simulation

Question 4

Events or transactions that occur subsequent to the financial statement date that may affect the financial statements and the auditor’s report

Answer 4

Subsequent Events

Question 5

Also known as “black box approach”

Answer 5

Auditing around the computer

Question 6

This contains information of continuing significance to the auditor in performing recurring audits

Answer 6

Permanent File

Question 7

These are policies and procedures that relate to specific use of the system.

Answer 7

Application Controls

Question 8

those that provide further evidence of conditions that existed at the financial statement date.

Answer 8

Requiring Adjustment

Question 9

It means an approximation of the amounts of an item in the absence of a precise means of measurement

Answer 9

Accounting Estimate

Question 10

This is a sampling plan used to estimate a numerical measurement of a population such as peso value.

Answer 10

Variable Sampling

Question 11

It is the maximum rate of deviations the auditor is willing to accept, without modifying the planned degree of reliance on the internal control.

Answer 11

Tolerable Deviation Rate

Question 12

those that are indicative of conditions that arise after the financial statement date.

Answer 12

Requiring Disclosure

Question 13

This is also called “white box approach”

Answer 13

Computer Assisted Audit Techniques (CAATS)

Question 14

This technique is primarily designed to test the effectiveness of the internal control procedures which are incorporated in the client’s computer program.

Answer 14

Test Data

Question 15

It refers to the possibility that the auditor’s conclusion, based on a sample may be different from the conclusion reached if the entire population were subjected to the same audit procedures

Answer 15

Sampling Risk

Question 16

the primary source of information about litigation and claims.

Answer 16

Entity’s Management

Question 17

This method of selecting sample involves determining a constant sampling interval and then selects the sample based on the size of that interval.

Answer 17

Systematic Selection

Question 18

These are audit procedures designed to substantiate the account balances or to detect material misstatements in the financial statements

Answer 18

Substantive Test

Question 19

It is the application of audit procedures to less than 100% of the items within an account balance or class of transactions such that all sampling units have a chance of selection.

Answer 19

Audit Sampling

Question 20

Are those procedures done at the end of the audit that generally cannot be performed before the other audit work is complete.

Answer 20

Wrap-Up Procedures

Question 21

This sample selection method gives each item in the population an opportunity to be selected; under this method, each peso is treated as one sampling unit

Answer 21

Value weighted selection

Question 22

It refers to the information obtained by the auditor in arriving at the conclusions on which the audit opinion is based

Answer 22

Evidence

Question 23

It refers to the amount of evidence that the auditor should accumulate.

Answer 23

Sufficiency

Question 24

a fundamental principle in the preparation of the financial statements.

Answer 24

Going Concern Assumption

Question 25

It is sometimes called stop-or-go sampling because after testing the sample, the auditor makes a decision of whether to stop or to go on with the sampling plan.

Answer 25

Sequential Sampling

Question 26

When using this technique, the auditor creates dummy or fictitious employee or other
appropriate unit for testing within the entity’s computer system.

Answer 26

Integrated Test Facility

Question 27

This is a sampling plan used to estimate the frequency of occurrence of a certain
characteristic in a population.

Answer 27

Attribute Sampling

Question 28

This contains evidence gathered and conclusions reached relevant to the audit of a
particular year

Answer 28

Current File

Question 29

It relates the timelines of evidence and its ability to satisfy the audit objective.

Answer 29

Relevance

Question 30

It is the amount of misstatement that the auditor believes exists in the population.

Answer 30

Expected Misstatement

Question 31

It refers to the risk that the auditor may draw incorrect conclusions about the account
balance or class of transactions because of human errors.

Answer 31

Non-Sampling Risk

Question 32

When using this method, the sample is selected without following an organized or
structured technique.

Answer 32

Haphazard Selection

Question 33

This form of sampling is most appropriate when no deviations are expected in the
population.

Answer 33

Discovery Sampling

Question 34

It is the maximum amount of misstatement that the auditor will permit in the population.

Answer 34

Tolerable Misstatement

Question 35

there is an ___ relationship between the expected misstatement and the sample size.

Answer 35

Direct

Question 36

Tolerable deviation rate is __ related to the sample size

Answer 36

Inversely

Question 37

37-38 Ordinarily, written representation is signed by the

Answer 37

Chief executive officer / Chief Financial officer