Fill This Form To Receive Instant Help

Help in Homework
trustpilot ratings
google ratings


Homework answers / question archive / University of Michigan ACCOUNTING ACC 575 CHAPTER 6:   1)Which of the following statements is most correct regarding the primary purpose of audit procedures? To detect all errors or fraudulent activities as well as illegal activities To comply with the SEC To gather corroborative audit evidence about management’s assertions regarding the client’s financial statements To determine the amount of errors in the balance sheet accounts in order to adjust the accounts to actual   A procedure designed to test for monetary misstatements directly affecting the validity of the financial statement balances is a: Test of controls Substantive test Test of attributes Monetary-unit sampling test   You are auditing the company’s purchasing process for goods and services

University of Michigan ACCOUNTING ACC 575 CHAPTER 6:   1)Which of the following statements is most correct regarding the primary purpose of audit procedures? To detect all errors or fraudulent activities as well as illegal activities To comply with the SEC To gather corroborative audit evidence about management’s assertions regarding the client’s financial statements To determine the amount of errors in the balance sheet accounts in order to adjust the accounts to actual   A procedure designed to test for monetary misstatements directly affecting the validity of the financial statement balances is a: Test of controls Substantive test Test of attributes Monetary-unit sampling test   You are auditing the company’s purchasing process for goods and services

Accounting

University of Michigan ACCOUNTING

ACC 575

CHAPTER 6:

 

1)Which of the following statements is most correct regarding the primary purpose of audit procedures?

    1. To detect all errors or fraudulent activities as well as illegal activities
    2. To comply with the SEC
    3. To gather corroborative audit evidence about management’s assertions regarding the client’s financial statements
    4. To determine the amount of errors in the balance sheet accounts in order to adjust the

accounts to actual

 

  1. A procedure designed to test for monetary misstatements directly affecting the validity of the financial statement balances is a:
    1. Test of controls
    2. Substantive test
    3. Test of attributes
    4. Monetary-unit sampling test

 

  1. You are auditing the company’s purchasing process for goods and services. You are primarily concerned with the company not recording all purchase transactions. Which audit procedure below would be the most effective audit procedure in this case?
    1. Vouching from the accounts payable account to the vendor invoices.
    2. Tracing vendor invoices to recorded amounts in the accounts payable account.
    3. Confirmation of accounts payable recorded amounts.
    4. Reconciling the accounts payable subsidiary ledger to the accounts payable account.

 

  1. The information obtained by the auditor in arriving at the conclusions on which the audit opinion is based is called:
    1. Audit working papers
    2. Audit assertions
    3. Audit evidence
    4. Audit standards

 

  1. The major reason an independent auditor gathers evidence is to
    1. form an opinion on the financial statements.
    2. detect fraud.
    3. evaluate management.
    4. evaluate internal control.

 

  1. Which of the following is the best example of a corroborating evidence?
    1. General journal
    2. Worksheet cost allocation
    3. Vendor’s invoice
    4. Cash receipts journal

 

  1. Which of the following statements about audit evidence is correct?
    1. Appropriateness is the measure of the quantity of audit evidence.
    2. Sufficiency is the measure of the quality of audit evidence and its relevance to a particular assertion and its reliability.

 

    1. Audit evidence is more persuasive when items of evidence from different sources or of different nature are consistent.
    2. There should be a one-to-one relationship between audit objective and audit procedure.

 

  1. Evidence is generally considered appropriate when:
    1. it has been obtained by random selection.
    2. there is enough of it to afford a reasonable basis for an opinion on financial statements.
    3. it has the qualities of being relevant, objective, and free from known bias.
    4. it consists of written statements made by managers of the enterprise under audit.

 

  1. Evidence are generally considered sufficient when:
    1. it is appropriate.
    2. there is enough of it to afford a reasonable basis for an opinion on financial statements.
    3. it has the qualities of being relevant, objective and free from unknown bias.
    4. it has been obtained by random selection.

 

  1. Appropriateness of evidence is a measure of the:
    1. quantity of evidence.
    2. quality of evidence.
    3. sufficiency of evidence.
    4. meaning of evidence.

 

  1. The sufficiency and appropriateness of evidential matter ultimately is based on the
    1. availability of corroborating dat
    2. Philippine Standard on Auditing.
    3. pertinence of the evidence.
    4. judgment of the auditor.

 

  1. An example of an external document that provides reliable information for the auditor is:
    1. employees time reports.
    2. bank statements.
    3. purchase order for company purchases.
    4. carbon copies of checks.

 

  1. An example of a document that the auditor receives from the client, but which was prepared by someone outside the client’s organization, is a:
    1. confirmation.
    2. sales invoice.
    3. vendor invoice.
    4. bank reconciliation.
  2. To be considered reliable evidence, confirmations must be controlled by:
    1. a client employee responsible for accounts receivable.
    2. a financial statement auditor.
    3. a client’s internal audit department.
    4. a client’s controller or CFO.

 

  1. Given the economic and time constraints in which auditors can collect evidence about management assertions about the financial statements, the auditor normally gathers evidence that is:
    1. irrefutable.
    2. conclusive.
    3. persuasive.
    4. completely convincing.

 

  1. It refers to the material (working papers) prepared by and for, or obtained and retained by the auditor in connection with the performance of the audit.
    1. Documentation
    2. Audit report
    3. Accounting data
    4. Corroborative evidence

 

  1. Which of the following best describes one of the primary objectives of audit documentation?
    1. Defend against claims of a deficient audit.
    2. Provide a principal support for the income taxation return.
    3. Provide documentation that the audit was conducted in accordance with auditing standards.
    4. Provide additional support or recorded amounts to the client.

 

  1. Which of the following is not an expert upon whose work an auditor may relay?
    1. Actuary
    2. Internal auditor
    3. Appraiser
    4. Engineer

 

  1. An expert whose expertise is used by the entity in preparing financial statements is called a(n):
    1. Financial expert
    2. Management expert
    3. Auditor’s expert
    4. Specialist

 

  1. External auditors must obtain evidence regarding what attributes of an internal audit department if the external auditors intend to rely on internal auditor’s work?
    1. Integrity
    2. Objectivity
    3. Competence
    4. All of the above

 

 

 

 

 

Option 1

Low Cost Option
Download this past answer in few clicks

3.83 USD

PURCHASE SOLUTION

Already member?


Option 2

Custom new solution created by our subject matter experts

GET A QUOTE