Audit Quiz - Chapter 7

Question 1

Audit Evidence is essential in expressing an opinion of the fair presentation of financial statements.

Answer 1

True

Question 2

The two determinants of Evidence Persuasiveness are Appropriateness and Sufficiency.

Answer 2

True

Question 3

When addressing evidence sufficiency, sample size and sample items content address the same concern.

Answer 3

False

Question 4

“Considering the source” is a factor in assessing audit appropriateness.

Answer 4

True

Question 5

Cost is not a factor to consider when determining evidence persuasiveness.

Answer 5

False

Question 6

Recalculation is a type of audit evidence.

Answer 6

True

Question 7

Inquiries of Client’s highly qualified personnel should be consider a very reliable type of evidence.

Answer 7

False

Question 8

Corroborative evidence is most desired of an auditor when performing an audit.

Answer 8

True

Question 9

Audit documentation includes audit procedures performed, evidence secured and analyzed, and audit conclusions reached.

Answer 9

True

Question 10

Sarbanes Oxley Act required auditors of public companies to prepare and maintain audit working papers for a period no less than 5 years.

Answer 10

False

Question 11

Analytical procedures are excellent in provided detailed persuasive audit evidence.

Answer 11

False

Question 12

Analytical procedures helps the auditor understand the client’s business and industry.

Answer 12

True

Question 13

When the audit is completed, the audit files are turned over to the audit committee of the audit client for save keeping and company records.

Answer 13

False

Question 14

Unanswered important matters or exceptions is an acceptable basis for an excusing an auditor being accused of a wrongdoing.

Answer 14

False