Documentation

Question 1

Which of the following is required for an audit in accordance with generally accepted auditing standards?

1. A list of the procedures performed and the findings obtained
2. An indication in the audit documentation that the accounting records agree or reconcile with the financial statements
3. A management representation letter that summarizes the timing and detailed of the auditor’s planned fieldwork
4. A flowchart or an internal control questionnaire that evaluates the effectiveness of the entity’s internal control

Answer 1

Option 2

The quantity, type and content of audit documentation vary with the circumstances, but it should be sufficient to show that the accounting records agree or reconcile with the financial statements

Question 2

Audit documentation should:

1. Be considered the primary support for the financial statements being audited
2. Show the accounting records agree or reconcile with the financial statements
3. Not be permitted to serve as a reference source for the client
4. Not contain critical comments concerning management

Answer 2

Option 2

Audit documentation should show that the accounting records agree or reconcile with the financial statements

Question 3

Which of the following statements is most accurate regarding audit documentation requirements?

1. If an oral explanation serves as sufficient support for the work the auditor performed, the explanation should be documented in the working papers
2. If the results of audit procedures indicate a need to revise the previous assessment of risk, the new assessment should be documented and the original assessment should be removed
3. The auditor should document findings that could result in a modification of the auditor’s report
4. If different audit procedures were performed due to a lack of responsiveness by tech lines, the lack of responsiveness should be included in the working papers

Answer 3

Option 3

The auditor should document findings that could result in a modification of the auditor’s report

Question 4

An auditor ordinarily uses a working trial balance resembling the financial statements without footnotes but containing columns for:

1. Reclassification and adjustments
2. Expenses and revenue summaries
3. Accruals and deferrals
4. Reconciliations and tick marks

Answer 4

Option 1

Question 5

Which of the following is not true about the report release date?

1. It is the date on which the auditor grants the client permission to use the report
2. It is used to define the beginning of the retention period
3. It is often the date at which the report is delivered to the audit client
4. It is defined as the date after which existing documentation must not be deleted, and additions to the documentation file must be documented

Answer 5

Option 4

The documentation completion date (and not the report release date) is the date after which existing documentation must not be deleted, and additions to be the documentation file must be documented