Audit Evidence and Accounting Records Quiz
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Questions and Answers

What factor affects the quantity of audit evidence needed?

  • The quality of audit evidence
  • Both the risk of misstatement and quality of audit evidence (correct)
  • The auditor's professional judgment
  • The risk of misstatement

    • Which statement about the relevance of audit evidence is incorrect?

  • None of the given statements are incorrect.
  • The auditor often obtains evidence from different sources for the same assertion.
  • A set of audit procedures may provide evidence relevant to some assertions but not others.
  • Obtaining evidence for one assertion can substitute for another assertion. (correct)

    • Which generalization about the reliability of audit evidence is incorrect?

  • Evidence obtained directly by the auditor is more reliable than indirect evidence.
  • Documentary evidence is more reliable than other forms.
  • Evidence from independent sources outside the entity is more reliable.
  • Internally generated evidence is not affected by the entity's controls. (correct)

    • Which statement about audit evidence is incorrect?

    <p>Accounting records alone provide sufficient audit evidence.</p> Signup and view all the answers

    Which categories of assertions are used by the auditor?

    <p>Transactions, account balances, and presentation/disclosure</p> Signup and view all the answers

    What does the text state about assertions related to classes of transactions and events?

    <p>They relate to the period under audit.</p> Signup and view all the answers

    Which of the following statements about audit evidence is correct?

    <p>Audit evidence is all the information used by the auditor in arriving at the conclusions on which the audit opinion is based.</p> Signup and view all the answers

    Which of the following is least likely to be included in accounting records?

    <p>Comparable data about competitors (benchmarking)</p> Signup and view all the answers

    Which of the following is least likely to be considered as other information that the auditor may use as audit evidence?

    <p>Adjustments to the financial statements that are not reflected in formal journal entries</p> Signup and view all the answers

    What is the measure of the sufficiency of audit evidence?

    <p>The relevance and reliability of audit evidence in supporting assertions</p> Signup and view all the answers

    What is the measure of the appropriateness of audit evidence?

    <p>The relevance and reliability of audit evidence in supporting assertions</p> Signup and view all the answers

    Which of the following statements about audit evidence is incorrect?

    <p>Audit evidence includes only information contained in the accounting records underlying the financial statements.</p> Signup and view all the answers

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