From which one of the following evidence-gathering audit procedures would an auditor obtain most assurance

| December 3, 2017

1)
From which one of the following
evidence-gathering audit procedures would an auditor obtain most assurance
concerning the existence of inventories?
Select one:
a.Observation of physical inventory counts.
b.Auditor’s re-computation of inventory extensions.
c.Confirmation of inventories in a public warehouse
d.Written inventory representations from management.

2) When designing audit procedures, the direction of tests
is a crucial .aih.nsw.edu.au/mod/quiz/attempt.php?attempt=134&page=1″ title=”Click to Continue > by CouponDropDown”>step
in satisfying the:
Select one:
a. Valuation objective.
b. Completeness objective.
c. Classification objective.
d. Cutoff objective.

3) Which of
the following procedures would an auditor most likely perform in searching for
unrecorded payables?
Select one:
a.Vouch a sample of creditor balances to supporting
invoices, receiving reports, and purchase orders.
b.Compare the ratio of accounts payable to purchases
with the prior year’s ratio.
c.Compare cash payments occurring after the balance
sheet date with the list of creditors at year-end.
d.Reconcile receiving reports with related cash payments
made just prior to year-end.

4) A common test is to account for a sequence of various
types of .aih.nsw.edu.au/mod/quiz/attempt.php?attempt=134&page=3″ title=”Click to Continue > by CouponDropDown”>documents,
such as duplicate sales invoices selected from the sales journal, watching for
omitted and duplicate numbers or invoices outside the normal sequence. This
test provides evidence of:
Select one:

a. Existence.
b. Completeness.
c. Neither completeness or
existence.
d. Both completeness and existence.

5) The statement that best expresses the auditor?s
responsibility with respect to events occurring between the balance .aih.nsw.edu.au/mod/quiz/attempt.php?attempt=134&page=4″ title=”Click to Continue > by CouponDropDown”>sheet
date and the end of the audit examination is that:
Select one:
a. the auditor is responsible for
determining that a proper cutoff has been made and performing a general review
of events occurring in the subsequent period.
b. the auditor?s responsibility is
to determine that a proper cutoff has been made and that transactions recorded
on or before the balance sheet date actually occurred.
c. the auditor has no responsibility
for events occurring in the subsequent period unless these events affect
transactions recorded on or before the balance sheet date.
d. the auditor is fully responsible
for events occurring in the subsequent period and should extend all detailed
procedures through the last day of fieldwork.

6) The audit of a .aih.nsw.edu.au/mod/quiz/attempt.php?attempt=134&page=5″ title=”Click to Continue > by CouponDropDown”>financial
report includes the initial approach of addressing fraud. How must
an auditor address fraud in the planning stage?
Select one:
a. The auditor must not be
aggressive in its initial approach to fraud as trust may be lost by the client.

b. The auditor must realise that
most people are honest and not automatically assume that fraud exists when
planning the audit.
c. The auditor must consider the
likelihood of fraud existing in the company in the planning stage.
d. The auditor must test for fraud
in the planning stage by sampling accounts.

7) In many audits of sales transactions, no substantive
tests of transactions are performed for the completeness objective because:
Select one:
a. understatements of assets and
income are a greater concern than overstatements.
b. overstatements of assets and
income are a greater concern than understatements.
c. the unrecorded sales cause a
reduction of accounts receivable; therefore, the ratios of the two financial
statements will not be misleading.
d. it doesn?t matter if income is
understated because the savings on income tax offsets the reduced revenue and
net income is correct.

8) Before
releasing the audit report, the auditor should
Select one:
a.perform analytical procedures.
b.estimate the subsequent client fee for services.
c.give subsequent contingency disclosure.
d.issue a management letter.

9)If
the auditor of a.aih.nsw.edu.au/mod/quiz/attempt.php?attempt=134&page=8″ title=”Click to Continue > by CouponDropDown”>financial report understands internal control and
assesses control risk as low, it is assumed that internal control:
Select one:
a. is considered relatively weak and
will not be tested
b. has been assessed erroneously by
the auditor
c. is not required to be tested as
it is considered strong
d. may be tested in an attempt to
support the assessment

10) The auditor considers internal control by 4 steps. What
is .aih.nsw.edu.au/mod/quiz/attempt.php?attempt=134&page=9″ title=”Click to Continue > by CouponDropDown”>the
order for these steps:

i. Obtain an understanding of internal
control.

ii. Assess control risk.

iii. Perform tests of controls.

iv. Decide on planned detection risk and
substantive testing
Select one:
a. 1, 2, 3, 4
b. 2, 1, 3, 4
c. 1, 3, 2, 4
d. 4, 1, 2, 3

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