An effective internal control system provides more reliable audit evidence than does an ineffective internal control system.The following statements were made in a discussion of audit evidence between two auditors. Which statement is not valid concerning audit evidence?I would not undertake that procedure because at best the results would only be persuasive and I’m looking for convincing evidence.’Which of the following statements concerning evidence is correct?A client’s accounting data cannot be considered sufficient audit evidence to support the financial report.Which of the following is the least persuasive documentation in support of an auditor’s opinion?Schedules of details of physical inventory counts conducted by the client.Which of the following factors is most important in determining the appropriateness of audit evidence?The reliability of the evidence in meeting the audit objective.To be appropriate, evidence must be both:reliable and relevant.The weakest form of audit evidence among the following is:a letter of representation from management.Evidence is reliable if it:signals the true state of an assertion.An auditor’s decision either to apply analytical procedures as substantive tests or to perform tests of details usually is determined by the:relative effectiveness and efficiency of the tests.Which of the following statements relating to the appropriateness of audit evidence is always true?Evidence gathered by auditors must be both reliable and relevant to be considered appropriate.Audit evidence can come in different forms with different degrees of persuasiveness. Which of the following is the least persuasive type of evidence?Sales invoices inspected by the auditor.The risk that an auditor’s procedures will lead to the conclusion that a material misstatement does not exist in an account balance when, in fact, such a misstatement does exist is:detection risk.Auditors can eliminate engagement risk:under no circumstances.The risk that, due to the application of an inappropriate audit procedure, an auditor will conclude that a material error does not exist in an account balance when, in fact, such error does exist is referred to as:non-sampling risk.As the acceptable level of detection risk decreases, an auditor may change the:nature of substantive tests from a less effective to a more effective procedure.As the acceptable level of detection risk decreases, an auditor may change the:nature of substantive tests from less effective to more effective procedures.As the acceptable level of detection risk decreases, the assurance directly provided from:substantive tests should increase.As the acceptable level of detection risk increases, an auditor may change the:timing of substantive tests from year-end to an interim date.The auditor faces a risk that the audit will not detect material misstatements that occur in the accounting process. In regard to minimising this risk, the auditor primarily relies on:substantive tests.The situation and circumstances can dictate the level of certain risks no matter what the auditor does. However, the auditor is always able to decide to reduce one of the following risks:Detection risk.The extent of substantive tests for an assertion in relation to the assessed level of inherent risk varies in a relationship that is ordinarily:direct.Which of the following best describes the concept of audit risk?The risk that the auditor will provide an unmodified opinion on a materially misstated financial report.Engagement risk is:the auditor’s risk of loss from events arising in connection with the financial report audited and reported upon.Inherent risk and control risk differ from detection risk in that they:exist independently of the financial report audit.Which of the following is not a qualitative factor that may affect an auditor’s establishment of materiality?Firm policy sets materiality at 5 per cent of pre-tax income.Which of the following would an auditor be most likely to use in determining the preliminary judgment about materiality?The entity’s annualised interim financial statements.Which one of the following statements is correct concerning the concept of materiality?Materiality is a matter of professional judgment.Which of the following relatively small misstatements would most likely have a material effect on an entity’s financial report?An illegal payment to a foreign official that was not recorded.Your preliminary audit plan for Astro Ltd states that planning materiality is set at one per cent of total assets. This planning materiality amount:may be revised based on the results of audit tests and new information as the audit progresses.When considering materiality for planning purposes, an auditor believes that misstatements aggregating $10 000 would have a material effect on an entity’s income statement, but that misstatements would have to aggregate $20 000 to materially affect the statement of financial position. Ordinarily, it would be appropriate to design auditing procedures that would be expected to detect misstatements that aggregate:$10 000.Which of the following tests is intended to detect deviations from prescribed Accounting Department procedures?Tests of controls designed specifically for the client.Which of the following procedures would be least likely to be included in an auditor’s test of controls?Confirmation.All of the following auditing procedures are substantive tests except:tests of approvals on invoices.'Dual-purpose tests’ is a term used for:tests of transactions that include substantive procedures as well as tests of controls.Which of the following statements concerning the auditor’s use of the work of an expert is correct?The expert should have an understanding of the auditor’s corroborative use of the expert’s findings.Audit documentation prepared on audits of publicly-held clients is the property of the:auditor.All of the following documents are typically in the current file except:chart of accounts.Audit documents record the results of the auditor’s evidence-gathering procedures. When preparing audit documents, the auditor should remember that:audit documents should be designed to meet the circumstances and the auditor’s needs on each engagement.Audit documents that record the procedures used by the auditor to gather evidence should be:designed to meet the circumstances of the particular engagement.Audit documentation:may be in paper, electronic or some other form.Which of the following is not a factor affecting the independent auditor’s judgment as to the quantity, type and content of audit working papers?The expertise of client personnel and their expected audit participation.In planning an audit engagement, which of the following is a factor that affects the independent auditor’s judgment as to the quantity, type and content of working papers?The anticipated nature of the auditor’s report.An auditor’s working papers will generally be least likely to include documentation showing how the:client’s schedules were prepared.The current file of an auditor’s working papers is most likely to include a copy of the:bank reconciliation.Which of the following is not a primary purpose of audit working papers?To support the financial report.Which assertions are tested by the audit procedure tracing?Tracing mainly tests the audit assertion of completeness – the fundamental goal behind tracing transactions is to ensure that transactions are recorded in their complete state. Vouching is carried out to test the audit assertion of existence, as well as occurrence.
Is tracing completeness assertion?Tracing is performed to verify the accuracy of the transaction and accounting records. Tracing is often performed to validate the completeness assertion of the financial statements.
What is tracing in auditing?What is Tracing in Auditing? Tracing is the process of following a transaction in the accounting records back to the source document.
Which assertions may be tested for the transactions and events category of management assertions quizlet?Which assertions may be tested for the "transactions and events" category of management assertions? Occurrence, completeness, authorization, accuracy, cutoff and classification.
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Tracing is used primarily to test which of the following assertions about classes of transactions?
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