AUDITING & ASSURANCE SERVICES CONNECT AC
10th Edition
ISBN: 9781259292057
Author: MESSIER
Publisher: MCG
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Question
Chapter 3, Problem 3.25MCQ
To determine
Concept Introduction:
Audit planning is the crucial phase of the audit where auditor determines the nature, timing, and extent of the
Materiality is a level at which an amount or transaction is considered relevant for the purpose of audit. Auditor provides his opinion on the basis of examination of material items.
To choose: The input to be used the auditor for planning of overall materiality.
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Students have asked these similar questions
Which of the following types of audit evidence generally is the most reliable?
A. Inquiries made of management
B. confirmation of account information
C. analytical procedures
D. review the prior-year audit process
When can controls tested by an auditor in a prior year be used in the current year's audit assessment?
Which of the following risk types increase when an auditor performs substantive analytical audit procedures for financial statement accounts at an interim date?a. Inherent.b. Control.c. Detection.d. Sampling.
Chapter 3 Solutions
AUDITING & ASSURANCE SERVICES CONNECT AC
Ch. 3 - Prob. 3.1RQCh. 3 - Prob. 3.2RQCh. 3 - Prob. 3.3RQCh. 3 - Prob. 3.4RQCh. 3 - Prob. 3.5RQCh. 3 - Prob. 3.6RQCh. 3 - Prob. 3.7RQCh. 3 - Prob. 3.8RQCh. 3 - Prob. 3.9RQCh. 3 - Prob. 3.10RQ
Ch. 3 - Prob. 3.11RQCh. 3 - Prob. 3.12RQCh. 3 - Prob. 3.13RQCh. 3 - Prob. 3.14RQCh. 3 - Prob. 3.15RQCh. 3 - Prob. 3.16MCQCh. 3 - Prob. 3.17MCQCh. 3 - Prob. 3.18MCQCh. 3 - Prob. 3.19MCQCh. 3 - Prob. 3.20MCQCh. 3 - Prob. 3.21MCQCh. 3 - Prob. 3.22MCQCh. 3 - Prob. 3.23MCQCh. 3 - Prob. 3.24MCQCh. 3 - Prob. 3.25MCQCh. 3 - Prob. 3.26PCh. 3 - Prob. 3.27PCh. 3 - Prob. 3.28PCh. 3 - Prob. 3.29PCh. 3 - Prob. 3.30PCh. 3 - Prob. 3.31PCh. 3 - Prob. 3.32P
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Similar questions
- What are the types of evidence would you normally look during the performance of your Financial Statement audit?arrow_forwardPlease discuss the audit process focusing on the concept of materiality in the audit plan, interpretation of financial ratios, as well as documentation and sampling in respect of audit evidence?arrow_forwardFor which of the following audit tests would an auditor most likely use attribute sampling? Making an independent estimate of the amount of FIFO Inventory. Examining invoices in support of the valuation of fixed asset additions. Selecting accounts receivable for confirmation of account balances Inspecting employee time cards for proper approval by supervisors.arrow_forward
- In considering the evidence needed to assess control risk during the period from interim to year-end, all of the following should be considered except the: A. Significance of the assertion being tested. B. Control risk on other assertions. C. Specific internal control policies and procedures tested during the interim period. D. Degree to which the policies and procedures were tested and the test reults.arrow_forwardPlease explain the audit process in detail, paying particular attention to the audit plan's notion of materiality, the interpretation of financial ratios, as well as documentation and sampling in relation to audit evidence.arrow_forwardIn which of the following circumstances would the audit team most likely use attributes sampling?a. Selecting customer accounts receivable for confirmation.b. Selecting inventory items for verification of physical quantities.c. Selecting purchase orders for indication of proper authorization.d. Selecting additions to property, plant, and equipment during the year.arrow_forward
- An audit strategy sets the direction, timing, and scope of an audit. Based on your audit knowledge, which of the following would be included in the audit strategy document? Select one:a. A flowchart of the entity's internal control system.b. The decision as to the combination of substantive testing and tests of control that would be adopted.c. The number of sales transactions to be tested.d. The results of the interim testing of payroll.arrow_forwardAnalytical procedures issued in the planning stage of an audit, generally_______ Select one: a. All of the others b. Directs attention to potential risk areas c. Helps to determine the nature, timing and extent of other audit procedures. d. Indicates important aspects of businessarrow_forwardWhere the auditor should summarize the overall audit strategy that contains the key decisions about the scope, timing and conduct of the audit a. Audit plan b. Memorandum c. Audit working papers d. Audit Note bookarrow_forward
- In which stage of audit the audit program will be created ? a. Fieldwork b. Reporting c. Planning d. Followuparrow_forwardWhich of the following BEST (select one) describes the purpose of preliminary planning: a) To gain an understanding of detailed testing requirements such as sample sizes. b) To formulate a preliminary assessment of the key risks and controls in the area under review in order to formulate the audit scope and objectives. c) To provide management with a timeline of audit activity. d) To determine and plan for substantive audit requirements.arrow_forwardWhich of the following documents would be the most reliable evidence for an audit? Group of answer choices A. Confirmation from third party directly obtained by the audit team B. Confirmation from third party that is forwarded by the audit client. C. Observation cited in the report documented by the audit team D. Observation cited in the report documented by third party with concurrence of the audit teamarrow_forward
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