Chapter 6: Additional

Question 1

Factors affecting the nature and extent of audit documentation are:

Answer 1

1. risk of material misstatement
2. extent to which judgment was required in performing the work and evaluating the results
3. nature of the specific auditing procedure
4. significance of the evidence obtained
5. nature and extent of any problems identified; and
6. need to document conclusions that may not be obvious

Question 2

The test data approach

Answer 2

a technique in which the client’s application program is used to process a set of data, the results of which are already known by the auditor. IF the client’s program is operating effectively, it should generate the same results pre-determined by the auditor.

Question 3

In microcomputer audit applications, efficient and effective system usage requires:

Answer 3

1. Identification of the appropriate audit tasks and

2. Appropriate software to perform the selected audit tasks