Question

1. When an auditor obtains the A/R aging and sends letters to the customers listed asking them to verify the amounts, what type of audit evidence is being obtained?

	a.	Reperformance
	b.	Confirmation
	c.	Physical Examination
	d.	Inquiry

2. A(n) _____ is a detailed instruction that specifies audit evidence to be obtained.

	a.	physical examination
	b.	audit procedure
	c.	analytical procedure
	d.	professional standard

3. An audit plan consists of a detailed list of audit procedures to be performed.

True False

4. The main purpose of gathering audit evidence is to _____.

	a.	understand the client's industry
	b.	form a conclusion
	c.	justify the expense of an audit
	d.	complete the permanent file

5. If an auditor determines that internal controls are ineffective, they will most likely take which of the following actions?

	a.	Decrease the materiality calculation.
	b.	Increase the amount of audit evidence gathered.
	c.	Decrease the amount of audit evidence gathered.
	d.	Increase the materiality calculation.

Answer 1

1) When an auditor obtains the A/R aging and sends letters to the customers listed asking them to verify the amounts, what type of audit evidence is being obtained.
Answer : Confirmation

It is the process of obtaining a representation of information or of an existing condition directly from a third party

2) is a detailed instruction that specifies audit evidence to be obtained
Answer : Audit Procedure

Audit Procedures are a series of steps/processes/ methods applied by an auditor for obtaining sufficient audit evidence for forming an opinion on financial statements, whether they reflect the true and fair view of the organization’s financial position.

3) An audit plan consists of a detailed list of audit procedures to be performed
Answer : True

4)  The main purpose of gathering audit evidence is to
Answer : form a conclusion
Audit evidence refers to information or data that use or collect by auditors as part their audit works to conclude their opinion on whether or not financial statements are prepared in all material respect and in accordance with the applicable financial frameworks

5) If an auditor determines that internal controls are ineffective, they will most likely take which of the following actions?
Answer : Increase the amount of audit evidence gathered