Which of the following statement is incorrect about documentation of the audit procedures performed and audit evidence obtained by an auditor? O a. It assists in keeping a record of significant matters arising during the audit O b. It aids the auditor to understand the nature, timing and extent of audit procedures performed O c. It supports in taking professional judgments O d. It does not help an auditor having no previous connection with the audit

Which of the following statement is incorrect about documentation of the audit procedures performed and audit evidence obtained by an auditor? O a. It assists in keeping a record of significant matters arising during the audit O b. It aids the auditor to understand the nature, timing and extent of audit procedures performed O c. It supports in taking professional judgments O d. It does not help an auditor having no previous connection with the audit

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter15: Audit Reports For Financial Statement Audits

Section: Chapter Questions

Problem 27CYBK

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Which among the following is the most important limitation of an audit, which result in most of the audit evidence while the auditor draws conclusions? a. Management and others do not provide complete information intentionally/ unintentionally b. Auditor’s opinion is mostly persuasive rather than conclusive. c. Audit is not an official investigation into alleged wrongdoings d. The occurrence of non-compliance with laws and regulations
Why might an auditor issue a disclaimer of opinion after an audit? A. All of these may cause an auditor to issue a disclaimer of opinion B. There is a scope limitation that prevented a complete audit C. The auditor is not independent D. There other issues that prevented the completeness of au
19. An auditor conducting an audit in accordance with ______________is responsible for obtaining reasonable assurance that the financial statements taken as a whole are free from material misstatement, whether caused by fraud or error. a. ISAs b. None of the options c. IFRS d. IAS
True/False 1. A confirmation is considered documentary evidence secured from outside the organization and sent directly to the auditors. 2. The auditor needs the client’s permission to send out “confirmations” 3. A customer’s response to a receivable confirmation request may contain restrictive language concerning its use. All restrictions would invalidate the reliability of the response as audit evidence.
Which of the following statements is incorrect regarding the reliability of audit evidence? a. While internal audit evidence is considered to be acceptable, the auditor usually prefers audit evidence form external sources. b. Oral representation by the client management is not a valid evidence. c. The effectiveness of accounting and internal control adds to the reliability of internal evidence. d. Audit evidence obtained directly by the auditor is more reliable than that one provided by the client.
36 Which one of the following options is the basis for opinion for an auditor? a. Only Sufficient evidence are the basis for audit opinion b. ISA , sufficient and appropriate audit evidence are the basis for audit opinion c. None of the options d. Only ISA is basis of audit opinion
19-Which among the following is the most important limitation of an audit, which result in most of the audit evidence while the auditor draws conclusions? a. Management and others do not provide complete information intentionally/ unintentionally b. Audit is not an official investigation into alleged wrongdoings c. Auditor’s opinion is mostly persuasive rather than conclusive. d. The occurrence of non-compliance with laws and regulations
Risk of incorrect acceptance is defined as _______. the risk that the auditor concludes that a material misstatement does not exist when it does exist the risk that the auditor concludes that a material misstatement does exist when it does exist the risk that an audit firm incorrectly issued an unmodified opinion the risk that an audit firm incorrectly accepts a client The objective of auditors is to obtain _______. sufficient appropriate audit evidence regarding the assessed risks of material misstatement sufficient appropriate audit evidence regarding the assessed risks of immaterial misstatement sufficient appropriate audit evidence from internal control only regarding the assessed risks of material misstatement insufficient appropriate audit evidence regarding the assessed risks of material misstatement When an adverse opinion is issued regarding internal control over financial reporting (ICFR), the…
7. Identify from the following the situation/s where auditors are removed by the client. a. All the given options b. Involve in fraud by the auditor c. Non-performance of his duty d. Non-cooperation by auditor
5. Which of the following is not a primary purpose of audit documentation? * A. To assist in the formulation of audit conclusion B. To facilitate the review of the audit procedures done by the audit team C. To coordinate the conduct of the audit D. To prepare evidence in the event of a suit against the client E. None of them
Which of the following statements is not true with respect to written representations?a. The failure of management to furnish them is a significant scope limitation, resulting in either an adverse opinion or a disclaimer of opinion.b. They should address management’s responsibility for designing internal control to prevent and detect fraud.c. Auditors use them to corroborate information received during the audit from the client and its employees.d. They are dated the same date as the auditor’s reports.
Incorporating elements of unpredictability in the selection of audit procedures to be performed by auditors include all of the following excepta. Varying the timing of the audit procedures.b. Selecting items for testing that have lower amounts or are otherwise outside customary selection parameters.c. Performing audit procedures on an unannounced basis.d. Sending attorney letters to every attorney listed under the legal expense account.e. None of these is correct.