Audit Evidence
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Questions and Answers

Which of the following is NOT one of the four audit evidence decisions needed to create an audit program?

  • Determining the characteristics that determine the persuasiveness of evidence (correct)
  • Specifying the types of analytical procedures and their purposes
  • Computing common financial ratios
  • Identifying the types of evidence used in auditing
  • Which of the following is NOT a type of evidence used in auditing?

  • Confirmation
  • Legal evidence (correct)
  • Physical examination
  • Observation
  • What is the purpose of analytical procedures in auditing?

  • To identify the four audit evidence decisions
  • To determine the persuasiveness of evidence
  • To compute common financial ratios (correct)
  • To contrast audit evidence with evidence used by other professions
  • What is the formula to compute common financial ratios?

    <p>$Profit Margin = \frac{Net Income}{Sales}$</p> Signup and view all the answers

    What is the purpose of audit documentation?

    <p>To prepare organized audit documentation</p> Signup and view all the answers

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