12 Questions
What factor affects the quantity of audit evidence needed?
Both the risk of misstatement and quality of audit evidence
Which statement about the relevance of audit evidence is incorrect?
Obtaining evidence for one assertion can substitute for another assertion.
Which generalization about the reliability of audit evidence is incorrect?
Internally generated evidence is not affected by the entity's controls.
Which statement about audit evidence is incorrect?
Accounting records alone provide sufficient audit evidence.
Which categories of assertions are used by the auditor?
Transactions, account balances, and presentation/disclosure
What does the text state about assertions related to classes of transactions and events?
They relate to the period under audit.
Which of the following statements about audit evidence is correct?
Audit evidence is all the information used by the auditor in arriving at the conclusions on which the audit opinion is based.
Which of the following is least likely to be included in accounting records?
Comparable data about competitors (benchmarking)
Which of the following is least likely to be considered as other information that the auditor may use as audit evidence?
Adjustments to the financial statements that are not reflected in formal journal entries
What is the measure of the sufficiency of audit evidence?
The relevance and reliability of audit evidence in supporting assertions
What is the measure of the appropriateness of audit evidence?
The relevance and reliability of audit evidence in supporting assertions
Which of the following statements about audit evidence is incorrect?
Audit evidence includes only information contained in the accounting records underlying the financial statements.
Test your knowledge on audit evidence and accounting records with this quiz. You will be asked questions about the nature of audit evidence, its inclusivity, and common misconceptions. Challenge yourself with questions related to accounting records as well.
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