Question

True/False

10) Audit procedures include direct evidence such as documentation and client interviews,
but not any theoretical or computational analysis.

15) The company Chart of Accounts is considered the “backbone” of the entire set of
working papers.

19)Audits of previous years are of little value in a new audit because business is dynamic
and constantly changes.

Answer 1

Answer 10:

FALSE

Explanation:

Audit procedures include documentation and client interviews.

• Documentation refers to the written records of audit evidences obtained and conclusions reached thereupon.
• Client interviews are done to obtain information from the client regarding the audit procedures.

Audit procedures also include computational analysis. The calculations are done during the audit procedures to confirm that the books are presented in a true and fair manner.

Answer 15:

FALSE

Explanation:

The chart of accounts is not considered as the backbone of the working papers. Chart of Accounts has little to do with auditing.

Answer 19:

FALSE

Explanation:

Audit of previous years must be kept in mind while performing the current audit so that the auditor can get to know about the opening balances and other misstatements of previous years.

In case of any doubt or clarification, feel free to come back via comments.