18 Questions
Which of the following analyses appearing in a predecessor's working papers is the successor auditor least likely to be interested in reviewing?
Analysis of contingencies.
In an internal audit, the audit supervisor determines that working papers are complete when:
Satisfied that the audit objectives have been met and the working papers support the conclusions.
Standardized working papers are often used, chiefly because they allow working papers to be prepared more:
Efficiently
Ordinarily, the audit may use schedules, analyses and other documentation prepared by entity personnel in order to:
Ensure the reliability and accuracy of the financial information.
Which of the following would the auditor be LEAST likely to do when assessing control risk for substantive tests?
Perform detailed tests of transactions and balances.
Which of the following is the LEAST important step in testing the purchasing function?
Observing the physical receipt of goods.
Which of the following is not generally included in the working papers file?
Copy of the internal audit's audit program.
The form and content of working papers are affected by all of the following, EXCEPT:
Specific audit methodology and technology used in the course of the audit.
Which of the following is not a factor that affects the form and content of working papers?
Specific audit methodology and technology used in the course of the audit.
Which of the following is NOT generally included in the auditor's permanent files?
Schedules that support the current year's adjusting entries.
Which of the following is not a factor that affects the form and content of working papers?
Size and complexity of the client's operations.
Which of the following is not generally included in the auditor's permanent files?
Schedules that support the current year's adjusting entries.
What is the audit procedure least likely to be performed assuming a low assessed level of control risk?
Search for unrecorded cash receipts
Which of the following is likely to produce the least reliable audit evidence when auditing the maintenance department?
Notes on discussions with mechanics in the maintenance operation
Which auditing procedure is ordinarily performed last?
Obtaining a management representation letter
Before applying substantive tests to the details of asset accounts at an interim date, an auditor should assess what?
Control risk at below the maximum level
What should an auditor conduct before applying principal substantive tests to account details at an interim date?
Reading of the minutes of directors’ meetings
In auditing, which action should be taken after reading minutes of directors' meetings but before confirming accounts payable?
Obtaining a client representation letter
Test your knowledge about the form and content of working papers in financial audits, including their purpose and elements. Explore the importance of working papers in supporting the audit process and ensuring compliance with accounting principles.
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