Which of the following presumptions is least likely to relate to the reliability of audit evidence?

Chapter 5 Part 1/3: External

An audit document that reflects the major components of an amount reported in the financial statements is referred to as a(n):
-lead schedule.
-audit control account.
-working trial balance.
-supporting schedule.

Which of the following procedures would an auditor most likely rely on to verify management's assertion of completeness?
-Confirming a sample of recorded receivables by direct communication with the debtors.
-Observing the entity's distribution of payroll

-Comparing a sample of shipping documents to related sales invoices.

In testing the existence assertion for an asset, an auditor ordinarily works from the:
-supporting documents to the accounting records.
-financial statements to the potentially unrecorded items.
-potentially unrecorded items to the financial statements.
-

-accounting records to the supporting documents.

Which of the following statements concerning audit evidence is correct?
-The difficulty and expense of obtaining audit evidence concerning an account balance are a valid basis for omitting the test.
-The measure of the reliability of audit evidence lies i

-The measure of the reliability of audit evidence lies in the auditor's judgment.

Which of the following presumptions is least likely to relate to the reliability of audit evidence?
-The more effective internal control, the more assurance it provides about the accounting data and financial statements.
-An auditor's opinion is formed wi

-An auditor's opinion is formed within a reasonable time to achieve a balance between benefit and cost.

Audit evidence can come in different forms with different degrees of reliability. Which of the following is the most persuasive type of evidence?
-Prenumbered entity sales invoices.
-Computations made by the auditor.
-Bank statements obtained from the ent

-Computations made by the auditor.

An auditor would be least likely to use confirmations in connection with the examination of:
-inventory held in a third-party warehouse.
-refundable income taxes.
-stockholders' equity.
-long-term debt.

-refundable income taxes.

The assurance bucket is filled with all of the following types of evidence except:
-tests of details.
-substantive analytical procedures.
-the audit report.
-test of controls.

Which of the following types of audit evidence is the least reliable?
-Test counts of inventory performed by the auditor.
-Prenumbered purchase order forms prepared by the entity.
-Correspondence from the entity's attorney about litigation.
-Bank statemen

-Prenumbered purchase order forms prepared by the entity.

The current file of the auditor's working papers should generally include:
-a copy of the financial statements.
-a flowchart of the accounting system.
-organization charts.
-copies of bond and note indentures.

-a copy of the financial statements.

The permanent file section of the working papers that is kept for each audit client most likely contains:
-a schedule of time spent on the engagement by each individual auditor.
-review notes pertaining to questions and comments regarding the audit work p

-narrative descriptions of the entity's accounting system and control procedures.

The primary objective of final analytical procedures is to:
-Obtain evidence from details tested to corroborate particular assertions.
-Assist the auditor in assessing the validity of the conclusions reached on the audit.
-Satisfy doubts when questions ar

-Assist the auditor in assessing the validity of the conclusions reached on the audit.

The substantive analytical procedure known as trend analysis is best described by:
-the examination of changes in an account over time.
-development of a model to form an expectation using financial data, nonfinancial data, or both to test account balance

-the examination of changes in an account over time.

Discussions with the owner-manager of an entity under audit reveal to the auditor that the company is more concerned with minimizing its income tax payments than maximizing income. Based on this information, which management assertion will the auditor be

Which of the following statements is correct with regard to the quality or appropriateness of evidential matter?
-The auditor's direct personal knowledge, obtained through observation and inspection, is more persuasive than information obtained indirectly

-The auditor's direct personal knowledge, obtained through observation and inspection, is more persuasive than information obtained indirectly from independent outside sources.

Which of the following audit procedures would most likely be used to test the mathematical accuracy of a five-hundred page inventory listing?
-Send confirmations to selected vendors to verify amounts.
-Examine a random sample of inventory documents.
-Manu

-Use computer assisted audit techniques to foot, or sum, the entire listing.

Confirmations would normally be most likely used as a type of audit evidence in connection with which of the following?
-Goodwill.
-Deferred Taxes.
-Machinery and Equipment.
-Accounts Receivable.

One of the main objectives of performing analytical review procedures during the planning phase of the audit is to identify:
-Transactions that have not been properly authorized.
-Illegal acts undetected as a result of poor internal controls.
-Inefficient

-Unusual changes that may signal possible account misstatements

Audit evidence can come in different forms with different degrees of reliability. Which of the following is the least reliable type of evidence?
-Vendor confirmations of accounts payable balances.
-Copies of bank statements obtained from the entity under

-Pre-numbered sales invoices.

Which of the following presumptions is correct regarding the reliability of audit evidence?
-To be reliable, evidence should be convincing rather than simply persuasive.
-Information obtained directly from the company is considered to be the most reliable

-An effective internal control system provides increased assurance with regard to the reliability of audit evidence.

Which of the following is true relating to audit work paper documentation?
-It serves as the basis of review for audit supervisors to determine if sufficient, appropriate evidence has been gathered.
-It should not include copies of any client-generated do

-It serves as the basis of review for audit supervisors to determine if sufficient, appropriate evidence has been gathered.

Which of the following items is generally not included as part of audit documentation?
-Heading.
-Indexing.
-Client review notation.
-Tickmarks.

According to the reliability hierarchy by evidence type as presented in the text, an example of audit evidence with a low level of reliability is:
-Reperformance.
-Inspection.
-Observation.
-Analytical procedures.

According to the reliability hierarchy by evidence type as presented in the text, an example of audit evidence with a high level of reliability is:
-Scanning.
-Recalculation.
-Observation.
-Confirmation.

Which of the following presumptions is correct regarding the reliability of audit evidence?

Which of the following types of audit evidence is the least?

Which of the following types of audit evidence is most reliable?

Which of the following procedures would provide the most reliable audit evidence?