AA D Audit evidence

Written by Fahad Mirza (ACCA)

اے سی سی اے · آڈٹ اور یقین دہانی · 11 سوالات

نام: ____________________ تاریخ: ____________

Which source of evidence is generally the most reliable?
- A Evidence obtained directly by the auditor from an independent external source
- B A copy document kept in the client's files
- C A verbal statement by management
- D An unsigned internal memo
Which assertion is tested by inspecting a physical asset?
- A Cut-off
- B Understandability
- C Existence
- D Completeness
Which assertion is of most concern for payables?
- A Rights
- B Completeness
- C Occurrence
- D Existence
The auditor sends a request for direct confirmation of balances to customers. Which assertion is mainly tested?
- A Valuation of inventory
- B Completeness of payables
- C Existence of receivables
- D Cut-off of payroll
Which procedure tests cut-off of inventory?
- A Reading the board minutes
- B Recalculating depreciation
- C Reviewing the audit plan
- D Checking goods received and despatch records around the year end
Which is a substantive procedure?
- A Reading the engagement letter
- B Observing a control being performed as a test of controls
- C Recalculating the depreciation charge
- D Rotating the audit partner
Which sampling method gives every item an equal chance of selection?
- A Judgemental selection
- B Systematic sampling
- C Block selection
- D Random sampling
What is tolerable misstatement in sampling?
- A The average error
- B The expected error
- C The audit fee
- D The maximum error the auditor will accept in a population
What is a benefit of using data analytics in audit?
- A The auditor can test whole populations and find unusual items
- B It removes the need for professional judgement
- C It guarantees that there is no fraud
- D It is free
The auditor wants to rely on the work of an expert. What must the auditor assess?
- A The expert's nationality
- B The expert's age
- C The expert's competence, capabilities and objectivity
- D The expert's fee
Which procedure tests the existence of inventory?
- A Reviewing the going concern assessment
- B Reviewing the budget
- C Reading the board minutes
- D Attending the inventory count

جوابی کلید

1. A, 2. C, 3. B, 4. C, 5. D, 6. C, 7. D, 8. D, 9. A, 10. C, 11. D

External, direct and documentary evidence is more reliable.
Existence means the asset is there.
The main risk for liabilities is that they are understated.
A customer who confirms the balance supports existence.
Cut-off ensures transactions are recorded in the correct period.
Tests of details and analytical procedures are substantive.
Systematic sampling selects every nth item.
It is set by reference to performance materiality.
Data quality, cost and skills are challenges.
The auditor stays responsible for the opinion.
Attending the count provides evidence of existence and condition.