_____ means the application of audit procedures to less than 100% of the items
_____ means the application of audit procedures to less than 100% of the items within an account balance or class of transactions to enable the auditor to obtain and evaluate audit evidence. a. Inspection b. Observation c. Audit sampling d. Analytical Procedure
Homework Answers
Step 1 Correct Answer
Correct is Option C - Audit Sampling
Audit sampling Means application of Audit procedures to less than 100% of items within an account balance or class of transaction to enable the auditor to obtain and evaluate audit evidence.
Step other items
Inspection
Inspection Means
examination of a document or record
or
Physical examination of an asset
Observation
Observation Means Witnessing a procedure being performed by the others
Analytical Procedures
Analytical procedures involve comparisons of different sets of financial and operational information, to see if historical relationships are continuing forward into the period under review
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_____ means the application of audit procedures to less than 100% of the items
Attached are examples of audit procedures performed by the auditor. REQUIRED: For each of the audit...
Attached are examples of audit procedures performed by the auditor. REQUIRED: For each of the audit procedures attached, indicate the type of audit evidence being obtained by the auditor. Choose your answer from the list below, selecting the best choice for the procedure TYPES OF AUDIT EVIDENCE Inspection of Documents--Tracing 2) Inspection of Documents--Vouching 3) Inspection of Documents-Scanning 4) Physical Inspection 5) Observation 6) Inquiry 7) Confirmation 8) Recalculation C9) Reperformance 10) Analytical Procedures EXAMPLES OF AUDIT PROCEDURES PERFORMED BY...
“Reviews are substantially less in scope than an audit” means: a) Analytical procedures are not applied...
“Reviews are substantially less in scope than an audit” means: a) Analytical procedures are not applied b) Inquiries were not made c) Evidence is not gathered d) All of the above
During year 1 audit of Cellening Co., the auditor performed various procedures relating to inventory. Match...
During year 1 audit of Cellening Co., the auditor performed various procedures relating to inventory. Match each of the following procedures with the description. Each audit procedures may be used once, more than once, or not at all. Audit procedures: Analytical procedure, External confirmation, inquiry, inspection of records or documents, Inspection of tangible assets, Observation, recalculation, reperformance. A. Inspection of tangible assets B. Inspection of records or documents C. Reperformance D. Inquiry E. Analytical procedure F. Recalculation G. Observation 1....
Analytical procedures are used during the planning phase of the audit, during the testing phase of...
Analytical procedures are used during the planning phase of the audit, during the testing phase of the audit, and at the end of the audit. Match a purpose of performing the analytical procedures to the audit phase Planning phase (Preliminary analytic review) [选择] Test phase (Analytical procedures) [选择] Final phase (Final analytic review) | [ 选择] Ižt] To obtain evidence to support an account balance To determine that the auditor has a solid understanding of any variances from prior period...
Chapter 5 & 6- Basics of the Audit Understand the different types of procedures (analytics, sampling,...
Chapter 5 & 6- Basics of the Audit Understand the different types of procedures (analytics, sampling, year end, interim work)- what they mean, being able to identify examples. (If I give you a procedure can you determine if it is an analytical procedure, work performed at interim, etc.) Understanding the audit risk model- what it means to asses risk as high, moderate, low, or maximum. (Do you do more or less work) (If I change one part of the formula...
(d) LIST OF AUDIT PROCEDURES PERFORMED FOR INVENTORY Audit Procedure Management Assertion (a) The auditor determined...
(d) LIST OF AUDIT PROCEDURES PERFORMED FOR INVENTORY Audit Procedure Management Assertion (a) The auditor determined that pledged inventory was identified in a note. (b) The auditor confirmed goods held by the client in a public warehouse. The auditor performed a purchases cutofftest to assure all purchase transactions for the year were included in the balance. The auditor accounted for the numerical sequence of purchase orders. The auditor vouched the recorded payables to receiving documents. (f) The auditor determined that...
Which of the following is true about analytical procedures? Analytical procedures are used in risk assessment,...
Which of the following is true about analytical procedures? Analytical procedures are used in risk assessment, as a substantive procedure for specific accounts, and near the completion of the audit of the audited financial statements. Performing analytical procedures results in the most reliable form of evidence. Analytical procedures are used for planning, but they should not be used to obtain evidence as to the reasonableness of specific account balances. Analytical procedures are tests of controls used to evaluate the quality...
II. Classify each of the following according to type of audit evidence: A. Analytical procedures E....
II. Classify each of the following according to type of audit evidence: A. Analytical procedures E. Observation B. Confirmation F. Inspection of Assets ( i.e. Physical Examination) c. Examination of Documents G. Recalculation D. Inquiry Reperformance I. Scanning Items 1. Cheet Check the extensions (multiplications) on sales invoices. 2. The auditor tests interest expense by developing an overall reasonableness test rather than redoing all the bond amortization schedules. (Don't use G, recalculation) Vouch sales invoices to related shipping documents to...
Chapter 5 & 6- Basics of the Audit Understand the different types of procedures (analytics, sampling, year end, interim work)- what they mean, being able to identify examples. (If I give you a pro...
Chapter 5 & 6- Basics of the Audit Understand the different types of procedures (analytics, sampling, year end, interim work)- what they mean, being able to identify examples. (If I give you a procedure can you determine if it is an analytical procedure, work performed at interim, etc.) Understanding the audit risk model- what it means to asses risk as high, moderate, low, or maximum. (Do you do more or less work) (If I change one part of the formula...
For each of the following specific audit procedures, indicate the type of audit evidence it is...
For each of the following specific audit procedures, indicate the type of audit evidence it is gathering: (1) Inspection of records or documents, (2) inspection of tangible assets (3) observation, (4) inquiry, (5) confirmation, (6) recalculationreperformance (8) analytical procedures, and (9) scanning. The audit evidences can be used more than once a Discussing the recording of sales discounts in the fourth quarter with the accounts receivable manager b Examining sales invoices for supporting customer order and shipping documents c Reviewing...
Attached are examples of audit procedures performed by the auditor. REQUIRED: For each of the audit procedures attached, indicate the type of audit evidence being obtained by the auditor. Choose your answer from the list below, selecting the best choice for the procedure TYPES OF AUDIT EVIDENCE Inspection of Documents--Tracing 2) Inspection of Documents--Vouching 3) Inspection of Documents-Scanning 4) Physical Inspection 5) Observation 6) Inquiry 7) Confirmation 8) Recalculation C9) Reperformance 10) Analytical Procedures EXAMPLES OF AUDIT PROCEDURES PERFORMED BY...
Analytical procedures are used during the planning phase of the audit, during the testing phase of the audit, and at the end of the audit. Match a purpose of performing the analytical procedures to the audit phase Planning phase (Preliminary analytic review) [选择] Test phase (Analytical procedures) [选择] Final phase (Final analytic review) | [ 选择] Ižt] To obtain evidence to support an account balance To determine that the auditor has a solid understanding of any variances from prior period...
(d) LIST OF AUDIT PROCEDURES PERFORMED FOR INVENTORY Audit Procedure Management Assertion (a) The auditor determined that pledged inventory was identified in a note. (b) The auditor confirmed goods held by the client in a public warehouse. The auditor performed a purchases cutofftest to assure all purchase transactions for the year were included in the balance. The auditor accounted for the numerical sequence of purchase orders. The auditor vouched the recorded payables to receiving documents. (f) The auditor determined that...
II. Classify each of the following according to type of audit evidence: A. Analytical procedures E. Observation B. Confirmation F. Inspection of Assets ( i.e. Physical Examination) c. Examination of Documents G. Recalculation D. Inquiry Reperformance I. Scanning Items 1. Cheet Check the extensions (multiplications) on sales invoices. 2. The auditor tests interest expense by developing an overall reasonableness test rather than redoing all the bond amortization schedules. (Don't use G, recalculation) Vouch sales invoices to related shipping documents to...
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