Chapter 1 LO1

Question 1

an auditor must have an _____ mental attidute?

Answer 1

independent

Question 2

auditors must determine the _____ and ____ of evidence necessary

Answer 2

type amount

Question 3

_____ is the accumulation and evaluation of evidence about information to determine and report on the degree of correspondence between the information and established criteria

Answer 3

Auditing

Question 4

To do an audit , information must be in what kind of form

Answer 4

a verifiable form

Question 5

Auditing is the accumulation and ____ of evidence about information to determine and report on the degree of correspondence between the information and established criteria

Answer 5

evaluation

Question 6

T/F the criteria for evaluating info doesn’t vary depending on the info being audited

Answer 6

F

Question 7

Evidence is any ____ used by the auditor to determine whether the info being audited is stated in accordance with established criteria

Answer 7

info

Question 8

Auditing is the accumulation and evaluation of evidence about information to ____ and report on the degree of correspondence between the information and established criteria

Answer 8

determine

Question 9

to satisfy purpose of the audit, auditors must obtain a sufficient ____ and _____ of evidence

Answer 9

quality quantitiy

Question 10

what are some examples of how an auditor performs audits of quantifiable info. what is this quantifiable info? (2)

Answer 10

1. financial statement 2. individual federal income tax return

Question 11

what are some examples of subjective info that an auditor might audit (2)

Answer 11

1. effectiveness of computer systems 2. efficiency of manufacturing operation

Question 12

to do an audit there must be information in a verifiable form and some standards or criteria by which the auditor can do what?

Answer 12

evaluate the info

Question 13

Auditing is the accumulation and evaluation of evidence about information to determine and report on the degree of correspondence between the _____ and established criteria

Answer 13

information

Question 14

T/F reports dont vary in form

Answer 14

F can be highy technical like finanical statement audits or can be simple oral report like an operational audit of small departments effectiveness

Question 15

Evidence is any info used by the auditor to determine whether the info being audited is stated in accordance with established ____

Answer 15

criteria

Question 16

to do an audit information must be in a verifiable form and there should be some what ? by which the auditor can evaluate the information

Answer 16

standards (criteria)

Question 17

Evidence is any info used by the auditor to ____whether the info being audited is stated in accordance with established criteria

Answer 17

determine

Question 18

what would be the criteria for auditing internal control over finanical reporting

Answer 18

the framework for establishing internal control like like Internal Control- Integrated Framework issued by COSO

Question 19

_____ is any info used by the auditor to determine whether the info being audited is stated in accordance with established criteria

Answer 19

Evidence

Question 20

Auditing is the accumulation and evaluation of evidence about information to determine and report on the ____ of correspondence between the information and established criteria

Answer 20

degree

Question 21

what is the final statge in the auditing process?

Answer 21

the audit report

Question 22

T/F for subjective info, it is more difficult to establish criteria

Answer 22

T

Question 23

T/F auditors can also audit more subjective info

Answer 23

T

Question 24

Evidence is any info used by the auditor to determine whether the ____ being audited is stated in accordance with established criteria

Answer 24

info

Question 25

audit reports differ in nature, but all must inform readers of what?

Answer 25

the degree of correspondence between the info audited and established criteria (tax return and Internal revenue code)

Question 26

Auditing is the accumulation and evaluation of evidence about information to determine and report on the degree of correspondence between the information and established \_\_\_\_\_

Answer 26

criteria

Question 27

the auditor must be qualified to understand the criteria used and competent to know the the types and amount of evidence to accumulate in order to do what?

Answer 27

reach the proper conclusion after examining the evidence

Question 28

what would the criteria be for audit of tax returns by IRS?

Answer 28

Internal Revenue code

Question 29

Evidence is any info used by the auditor to determine whether the info being audited is stated in accordance with ____ criteria

Answer 29

established

Question 30

What is COSO?

Answer 30

Committee of sponsoring organizations of the treadway commision

Question 31

T/f even though auditors are paid fees by the company, they are normally sufficiently independent to conduct audits that can be relied on by user

Answer 31

T

Question 32

Auditing is the accumulation and evaluation of evidence about information to determine and report on the degree of correspondence between the information and _____ criteria

Answer 32

established

Question 33

Evidence is any info used by the auditor to determine whether the info being audited is stated in ____ with established criteria

Answer 33

accordance

Question 34

what does the audit report do?

Answer 34

communicates the auditors findings to users

Question 35

auditors reporting on company financial statments are often called ______ auditors

Answer 35

independent

Question 36

what are 3 examples of what auditors provide assurance on?

Answer 36

1. financial statement 2. effectiveness of internal control over financial reporting 3. corporate sustainability reports

Question 37

Auditing is the accumulation and evaluation of evidence about information to determine and ____ on the degree of correspondence between the information and established criteria

Answer 37

report

Question 38

an auditor must have an independent what?

Answer 38

mental attitude

Question 39

Auditing is the ____ and evaluation of evidence about information to determine and report on the degree of correspondence between the information and established criteria

Answer 39

accumulation

Question 40

Evidence is any info used by the auditor to determine whether the info being ____ is stated in accordance with established criteria

Answer 40

audited

Question 41

Auditing should be done by a _____ and _____ person

Answer 41

competent independent

Question 42

auditors strive to maintain a high level of ____ to keep the confidence of users relying on their reports

Answer 42

independence

Question 43

how is criteria diecided on for subjective info?

Answer 43

the auditors and the entitities being audited agree on the criteria well before audit starts

Question 44

any info used by the auditor to determine whether the info being audited is stated in accordance with established criteria is called?

Answer 44

evidence

Question 45

Auditing is the accumulation and evaluation of evidence about information to determine and report on the degree of ____ between the information and established criteria

Answer 45

correspondence

Question 46

the audtor must be competent to know what?

Answer 46

the types and amount of evidence to accumulate

Question 47

Auditing is the accumulation and evaluation of evidence about ____ to determine and report on the degree of correspondence between the information and established criteria

Answer 47

information

Question 48

Evidence is any info used by the auditor to determine whether the info being audited is ____ in accordance with established criteria

Answer 48

stated

Question 49

The auditor must be qualified to understand what?

Answer 49

the criteria used (GAAP)

Question 50

Evidence is any info used by the ____ to determine whether the info being audited is stated in accordance with established criteria

Answer 50

auditor

Question 51

What would be the criteria for auditing historical financial statements by CPA firms? 2

Answer 51

1. GAAP 2. IFRS

Question 52

auditors must determine the type and amount of evidence necessary and evaluate what?

Answer 52

whether the info correspones to the established criteria

Question 53

the competence of those performing the audit is of little value if they are _____ in the accumulation and evaluation of evidience

Answer 53

biased

Question 54

what are 4 forms of evidence?

Answer 54

1. electronic and documentary data about transactions 2. written and electronic communication with outsiders 3. observations by the auditor 4. oral testimony of the client

Question 55

Auditing is the accumulation and evaluation of ____ about information to determine and report on the degree of correspondence between the information and established criteria

Answer 55

evidence

Question 56

if irs auditing apple corport tax return what would be the criterial?

Answer 56

Internal REvenue code instead of GAAP

Question 57

how are internal auditors kept independent of the operating units they audit?

Answer 57

they usually report to top managment and the board of directors

Question 58

what is Evidence

Answer 58

any info used by the auditor to determine whether the info being audited is stated in accordance with established criteria