(Objectives 7-5, 7-6) The following questions concern audit documentation. Choose the best response.
a. Which of the following is not a primary purpose of audit documentation?
(1) To coordinate the audit.
(2) To assist in preparation of the audit report.
(3) To support the financial statements.
(4) To provide evidence of the audit work performed.
b. During an audit engagement, pertinent data are compiled and included in the audit files. The audit files primarily are considered to be
(1) a client-owned record of conclusions reached by the auditors who performed the engagement.
(2) evidence supporting financial statements.
(3) support for the auditor’s representations as to compliance with auditing standards.
(4) a record to be used as a basis for the following year’s engagement.
c. Although the quantity, type, and content of audit documentation will vary with the circumstances, audit documentation generally will include the
(1) copies of those client records examined by the auditor during the course of the engagement.
(2) evaluation of the efficiency and competence of the audit staff assistants by the partner responsible for the audit.
(3) auditor’s comments concerning the efficiency and competence of client management personnel.
(4) auditing procedures followed and the testing performed in obtaining audit evidence.
Objective 7-5
Understand the purposes of audit documentation.
Objective 7-6
Prepare organized audit documentation.
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