Chapter 05 – Evidence and Documentation
1. Audit evidence includes only written information used by the auditor in arriving at an
opinion about the fairness of financial statements.
2. The auditor gathers audit evidence to test management’s assertions.
3. Management assertions fall into four main categories.
Chapter 05 – Evidence and Documentation
4. The classification assertion refers to transactions and events being recorded in the correct
accounting period.
5. The completeness assertion refers to ensuring that transactions and events that should have
been recorded actually have been recorded.
6. The cutoff assertion relates to whether transactions and events have been recorded in the
correct accounting period.
Chapter 05 – Evidence and Documentation
7. Audit procedures are designed to test management assertions.
8. The relevance of audit evidence or specific audit procedures depends on the assertion being
tested.
9. The auditor must use his or her professional judgment to determine the amount of audit
evidence to be gathered.
Chapter 05 – Evidence and Documentation
10. The sufficiency of evidence refers to the quality of audit evidence.
11. A confirmation is used to
12. Which of the following elements ultimately determines the amount of audit work that is
necessary in the circumstances to afford a reasonable basis for an opinion?
Chapter 05 – Evidence and Documentation
13. Which of the following is an essential factor in evaluating the sufficiency of evidence? The
evidence must
14. Which set of assertions is tested when, during completion of the audit, the audit partner
conducts a final review of the format of the entity’s balance sheet?
Chapter 05 – Evidence and Documentation
15. In testing plant and equipment balances, an auditor may physically inspect new additions
listed on the summary of plant and equipment transactions for the year. This procedure is
designed to obtain evidence concerning management’s assertions about classes of transactions
and events, and specifically, which assertion?
16. Which assertions may be tested for the “account balances” category of management
assertions?
Chapter 05 – Evidence and Documentation
17. Which assertions may be tested for the “transactions and events” category of management
assertions?
18. Which assertions may be tested for the “presentation and disclosure” category of
management assertions?
Chapter 05 – Evidence and Documentation
19. Tracing is used primarily to test which of the following assertions about classes of
transactions?
20. Vouching is used primarily to test which of the following assertions about classes of
transaction?
21. In designing written audit programs, an auditor should plan specific audit procedures to test
Chapter 05 – Evidence and Documentation
22. Footing is an example of
23. In determining whether transactions have been recorded, the direction of the audit testing
should start from the
24. To test for unsupported entries in the ledger, the direction of audit testing should start from
the
Chapter 05 – Evidence and Documentation
25. Which of the following presumptions does not relate to the appropriateness of audit
evidence?
26. Of the following, which is the least persuasive type of audit evidence?
Chapter 05 – Evidence and Documentation
27. The third general auditing standard requires that due professional care be exercised in the
performance of the examination and the preparation of the report. Due professional care deals
with what is done by the independent auditor and how well it is done. For example, due care in
the matter of audit documents requires that audit documents’
28. Which of the following show the detailed general ledger accounts that make up a financial
statement category on the auditor’s working trial balance?
Chapter 05 – Evidence and Documentation
29. The permanent (continuing) file of an auditor’s working papers most likely would include
copies of the
30. An example of audit evidence with a medium level of reliability is
31. Audit documentation prepared on audits of public clients is the property of the
Chapter 05 – Evidence and Documentation
32. All of the following are typically in the current file except:
33. You are auditing a store that sells merchandise. Some of the store merchandise is held on
consignment. Which account balance assertion for inventory should you be most concerned
about verifying?
Chapter 05 – Evidence and Documentation
34. You are auditing a manufacturing company that has a large production facility. Some of the
production equipment is held through lease agreements. Which of the following is the account
balance assertion you would be most concerned about?
35. Which of the following procedures would an auditor most likely perform to verify
management’s assertion of completeness?
Chapter 05 – Evidence and Documentation
36. Which of the following best describes the primary purpose of audit procedures?
37. Procedures specifically outlined in an audit program are designed primarily to
38. Which statement concerning audit evidence is not valid?
Chapter 05 – Evidence and Documentation
39. Each of the following might, by itself, form a valid basis for an auditor to reduce substantive
testing except for the:
40. Of the following, the most reliable type of evidence typically is:
41. Which of the following presumptions is correct about the reliability of audit evidence?
Chapter 05 – Evidence and Documentation
42. Which of the following types of documentary evidence should the auditor consider to be the
most reliable?
43. Which of the following is the least persuasive documentation in support of an auditor’s
opinion?
Chapter 05 – Evidence and Documentation
44. Which of the following statements is generally correct about the appropriateness of audit
evidence?
45. Which of the following types of audit evidence is the most persuasive?
Chapter 05 – Evidence and Documentation
46. Following are several statements regarding accounting records or audit documentation.
Which of the statements is correct?
47. Audit documents record the results of the auditor’s evidence-gathering procedures. When
preparing audit documents, the auditor should remember that
Chapter 05 – Evidence and Documentation
48. Audit documents that record the procedures used by the auditor to gather evidence should
be
49. In creating lead schedules for an audit engagement, what client information is needed to
begin?