Question

MULTIPLE CHOICE Choose the one alternative that best completes the statement or answers wie que 1) – 1) Audit procedures may be performed: For to the fiscal year-end of the client Yes No Yes No Subsequent to the fiscal year-end of the client Yes No No Yes 2 - 2) The principles requires the auditor to accumulate sufficient competent evidence to support the opinion issued. Because of the nature of audit evidence, it is A) likely that the auditor would change his/her mind about the opinion if he/she took the time to gather additional evidence. B) unlikely the auditor will arrive at a conclusion. C) likely the auditor will be completely convinced that the opinion is correct. D) unlikely the auditor will be completely convinced that the opinion is correct. 3) – 3) Which of the following forms of evidence is most reliable? A) Internal memo explaining the issuance of a credit memo. B) General ledger account balances. C) Copy of month-end adjusting entries. D) Confirmation of A/R balance received from a customer. 4)_ 4) When an auditor calculates the gross margin as a percent of sales and compares it with previous periods, this type of evidence is called A) observation B) inquiry C) physical examination. D) analytical procedure

Answer 1

Answer 1.

Option a is correct. [both times can be performed]

Answer 2.

Option d is correct. [unlikely that he will be convinced that its correct]

Answer 3.

Option d is correct. [confirmation from customer is more reliable]

Answer 4.

Option d is correct. [analytical procedures as analysis of 2 yrs is done]