Which of the following is the most objective type of evidence?
the physical count of securities and cash
. Evidence is generally considered appropriate when: it has the qualities of being relevant, objective, and free from known bias.
What is the most objective type of evidence?
Which of the following is the most objective type of evidence?
the physical count of securities and cash
. Evidence is generally considered appropriate when: it has the qualities of being relevant, objective, and free from known bias.
Which of the following is the most reliable form of evidence?
Answer: A.
Confirmation of accounts receivable balance
. Confirmation of accounts receivable balance is considered to be the most reliable because it…
Which of the following is the most reliable audit evidence?
Documentary evidence
is more reliable when it is received by the auditor indirectly rather than directly. Evidence is usually more persuasive for balance sheet accounts when it is obtained: as close to the balance sheet date as possible.
When the auditor uses supporting evidence for amounts posted to account balances with documentary evidence that process is called?
When the auditor develops supporting evidence for amounts posted to account balances with documentary evidence, that process is called:
vouching
. An example of an external document that provides reliable information for the auditor is: bank statements.
Which of the following is an example of objective evidence?
The term includes any statement of fact that somebody documented and based on verifiable tests, observations, or measurements. Evidence that is objective may, for example, be
a test log, test report, review report, or non-conformance report
.
What is appropriate evidence?
Appropriateness of evidence is
the quality of the evidence
, i.e., its relevance and reliability to support the auditor’s opinion. Audit evidence includes information provided in books of accounts as well as information from other sources.
What is the major reason an independent auditor gathers evidence?
(1)
Verify that all material accounting estimates have been developed
. (2) Ensure that the accounting estimates used are properly disclosed in accordance with GAAP. (3) Determine if the accounting estimates used are consistent with those of the client’s primary competitors.
Which of the following is an example of internal documentary evidence?
Which of the following is an example of internal documentary evidence?
A carrier’s bill of lading
. A sales invoice copy. A customer’s purchase order.
When auditors use documents to support recorded transactions the process is often called?
When auditors use documents to support recorded transactions, the process is often called
Vouching
.
What are the six characteristics of reliable audit evidence?
The six characteristics of reliability that determine the evidence are
independence of provider, effectiveness of clients internal controls, auditors direct knowledge, qualifications of individuals providing the information, degree of objectivity and timeliness
.
What are the 7 audit assertions?
Companies must attest to assertions of
existence, completeness, rights and obligations, accuracy and valuation, and presentation and disclosure
.
What are the qualities of audit evidence?
Appropriateness is the measure of the quality of audit evidence, i.e., its
relevance and reliability
. To be appropriate, audit evidence must be both relevant and reliable in providing support for the conclusions on which the auditor’s opinion is based.
What is permanent and current audit file?
Current audit files contain
information that relates to a specific audit engagement
. … Permanent audit files include information that concerns the organizational and legal structure of a client. Current files consist of information relating to correspondences, planning process, audit programmers, accounting records, etc.
What are the risks of material misstatement?
- Managerial incompetence.
- Poor oversight by the board of directors.
- Inadequate accounting systems and records.
- Declining economic conditions.
- Operation in rapidly changing industry.
Which of the following is the least persuasive type of audit evidence?
Bank statements obtained from the client
.
