Auditing: A Risk Based-Approach (MindTap Course List)
11th Edition
ISBN: 9781337619455
Author: Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher: Cengage Learning
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Question
Chapter 6, Problem 12RQSC
a.
To determine
Introduction: The reliability of audit evidence depends upon the origin and the nature of the evidence. The circumstances are forms an important part in deciding about the reliability.
To establish : The difference between reliability and relevance.
b)
To determine
Introduction: The reliability of audit evidence depends upon the origin and the nature of the evidence. The circumstances are forms an important part in deciding about the reliability.
To establish: The reliability of potential audit evidence by an auditor.
c)
To determine
Introduction: The reliability of audit evidence depends upon the origin and the nature of the evidence. The circumstances are forms an important part in deciding about the reliability.
To establish: Whether the auditor has made a wrong judgment.
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Which of the following is correct about the appropriateness of audit evidence?
O a. It is the measure of the over-all audit strategy
O b. It is the measure of the quantity of audit evidence
O c. It is the measure of the quality of audit evidence
O d. It is the amount of the audit evidence
A.“It is the auditors’responsibility to gather sufficient appropriate evidence to reachtheir opinion.
Discuss the above statement by explaining the differences between the evidence’s sufficiency and appropriateness. Your answer should include a discussion of two types of audit evidence.
Determine which of the following is most correct statement regarding the reliability of audit evidence.
Select one:
a. Reliability of audit evidence is dependent upon the evidence being subjective
b. Reliability of evidence refers to the amount of evidence obtained.
c.
If internal controls are effective, evidence obtained is more reliable than when the controls are not effective.
d. Information that is indirectly obtained from external sources is the most reliable audit evidence
Chapter 6 Solutions
Auditing: A Risk Based-Approach (MindTap Course List)
Ch. 6 - Prob. 1CYBKCh. 6 - Prob. 2CYBKCh. 6 - Prob. 3CYBKCh. 6 - Which of the following statements is true...Ch. 6 - Prob. 5CYBKCh. 6 - Prob. 6CYBKCh. 6 - Prob. 7CYBKCh. 6 - Prob. 8CYBKCh. 6 - Prob. 9CYBKCh. 6 - Prob. 10CYBK
Ch. 6 - Prob. 11CYBKCh. 6 - Prob. 12CYBKCh. 6 - Prob. 13CYBKCh. 6 - Prob. 14CYBKCh. 6 - Prob. 15CYBKCh. 6 - Prob. 16CYBKCh. 6 - Prob. 17CYBKCh. 6 - Prob. 18CYBKCh. 6 - Prob. 19CYBKCh. 6 - Prob. 20CYBKCh. 6 - Prob. 1RQSCCh. 6 - Prob. 2RQSCCh. 6 - Prob. 3RQSCCh. 6 - Prob. 4RQSCCh. 6 - Refer to Exhibit 6.2 and describe the differences...Ch. 6 - Prob. 6RQSCCh. 6 - Prob. 7RQSCCh. 6 - Prob. 8RQSCCh. 6 - Prob. 10RQSCCh. 6 - Prob. 11RQSCCh. 6 - Prob. 12RQSCCh. 6 - Prob. 13RQSCCh. 6 - Prob. 14RQSCCh. 6 - Prob. 15RQSCCh. 6 - Indicate how the auditor could use substantive...Ch. 6 - Prob. 17RQSCCh. 6 - Prob. 18RQSCCh. 6 - Prob. 19RQSCCh. 6 - Prob. 20RQSCCh. 6 - Prob. 21RQSCCh. 6 - Prob. 22RQSCCh. 6 - Prob. 23RQSCCh. 6 - Prob. 24RQSCCh. 6 - Prob. 25RQSCCh. 6 - Prob. 26RQSCCh. 6 - Prob. 27RQSCCh. 6 - Prob. 28RQSCCh. 6 - Prob. 29FFCh. 6 - Prob. 30FFCh. 6 - Prob. 31FFCh. 6 - Prob. 32FFCh. 6 - Prob. 33FFCh. 6 - MINISCRIBE (LO 1, 2) As reported in the Wall...
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Similar questions
- Consider the concepts of sufficient and appropriate audit evidence. Assess how audit risk relates to audit evidence. How do auditors audit accounting estimates and other subjective information? What are analytical procedures, and why are they a useful audit tool? Explain the importance of audit documentation.arrow_forwardYou have been asked by the audit manager to undertake preliminary analytical procedures.a) Identify the sources of information from which an auditor develops expectations.b) Describe the factors that influence an auditor’s consideration of the reliability of data for purposes of achieving audit objectives.arrow_forwardDefine the term "materiality" in the context of audit reporting. What factors will influence the auditor's assessment of materiality?arrow_forward
- 1. What is appropriate audit evidence? How does an auditor determine whether the appropriate audit evidence is sufficient to support the opinion expressed in the auditor's report? 2. Explain the types of audit proceduresarrow_forwardIn obtaining audit evidence, the auditor should use professional judgment to assess the risk of material misstatement (which includes inherent and control risk) and design further audit procedures to ensure this risk is increased to an acceptably high level. TRUE OR FALSE? WHY?arrow_forwardWhich of the following statements about audit evidence is correct? Group of answer choices There should be a one-to-one relationship between audit objective and audit procedure. Audit evidence is more persuasive when items of evidence from different sources or of different nature are consistent Sufficiency is the measure of the quality of audit evidence and its relevance to a particular assertion and its reliability Appropriateness is the measure of the quantity of audit evidencearrow_forward
- Audit procedures are takes performed by the internal auditors and the auditee to gather the evidence required achieve audit objectives . Select one a. False b. Truearrow_forward1. Describe how the "culmination" of the audit process looks like. 2. In the final stage of a risk-based audit, how shall the auditor know that sufficient appropriate audit evidence has been obtained to support the conclusions reached for the auditor's report to be issued? 3.What are the major reasons for modifying an otherwise unmodified auditor's report?arrow_forward6-50. An auditor has to determine both the reliability and the relevance of potential audit evidence in order to determine that appropriate audit evidence is gathered. Explain the difference between relevance and reliability. How does an auditor determine the reliability of potential audit evidence? For each of the following items (listed as (1) through (6)), identify whether the auditor has made a judgment error, and if there is a judgment error whether the error relates to evidence reliability or relevance. Organize your answer as follows: Judgment Error Nature of Error Explanation Yes or No Relevance, Reliability, or Both Description of error The auditor receives only 20% of the confirmations that were sent to customers to verify their account balance. The auditor responds by taking another sample of receivables to send out in place of the first sample. The auditor is convinced the first sample is not representative of the population as a whole. The auditor sent a…arrow_forward
- The reliability of evidence depends on the nature and source of the evidence. Which of the following presumption is correct about the reliability of audit evidence? Select one: a. Evidence from sources outside an entity is more reliable than evidence obtained solely from within the entity. b. All the given answers are correct. c. Evidence in the form of documents or written representations is more reliable than oral representations. d. Evidence obtained directly by the auditor is more reliable than evidence obtained from the client.arrow_forwardWhat factors should an auditor consider prior to accepting anengagement? Explain.arrow_forward
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