Question 1.1. (TCO 6) The distinction between physical examination of assets and examination of documents is dependent on the item being examined. If the object being examined has no inherent value, the evidence is called (Points : 3)
none of the above.
diagnostic tests of financial information that may not be classified as evidential matter.
calculations of financial information made by a computer.
substantive tests of financial information made by a study and comparison of relationships among data.
statistical tests of financial information designed to identify areas requiring intensive investigation.
The definition of analytical tests emphasizes a comparison of client's data to GAAP.
Analytical procedures are required on all audits.
Analytical procedures can be used as substantive tests.
For certain accounts with small balances, analytical procedures alone may be sufficient evidence.
Confirmations are expensive and so are often not used.
Confirmations may inconvenience those asked to supply them, but they are widely used.
Confirmations are sometimes not reliable and so auditors use them only as necessary.
None of the above statements are true.
material weaknesses of internal control.
the predictability of financial data from individual transactions.
the various assertions that are embodied in the financial statements.
areas that may represent specific risks relevant to the audit.
Question 6.6. (TCO 7) A measure of the auditor's assessment of the likelihood that there are material misstatements in an account before considering the effectiveness of the client's internal control is (Points : 3)
acceptable audit risk.
The burden of initiating the communication rests with the predecessor auditor.
The burden of initiating the communication rests with the successor auditor.
The predecessor auditor must receive their former client's permission prior to divulging information to the successor auditor.
The predecessor auditor may choose to provide a limited response to a successor auditor.
Question 8.8. (TCO 8) The preliminary judgment about materiality is the _____ amount by which the auditor believes the statements could be misstated and still not affect the decisions of reasonable users. (Points : 3)
the materiality range.
the error range.
To determine the appropriate level of audit experience required for the work
So that the client can know what records to make available to the auditor
To plan the appropriate audit evidence to accumulate and develop an overall audit strategy
None of the above