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ACCT 555 External Auditing Week 3 Homework Assignment

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ACCT 555 External Auditing Week 3 Homework Assignment

6-19 (Objective 6-1) The following questions concern the reasons auditors do audits. Choose the best response.

Which of the following best describes the reason why an independent auditor reports on financial statements?

Because of the risk of material misstatement, an audit should be planned and performed with an attitude of

The major reason an independent auditor gathers audit evidence is to

6-20 (Objective 6-3) The following questions deal with errors and fraud. Choose the best response.

An independent auditor has the responsibility to design the audit to provide reasonable assurance of detecting errors and fraud that might have a material effect on the financial statements. Which of the following, if material, is a fraud as defined in auditing standards?

What assurance does the auditor provide that errors, fraud, and direct-effect illegal acts that are material to the financial statements will be detected?

6-27 (Objectives 6-6, 6-7) The following are specific transaction-related audit objectives applied to the audit of cash disbursement transactions (a through f), management assertions about classes of transactions (1 through 5), and general transaction-related audit objectives (6 through 11).

Specific Transaction-Related Audit Objective

Recorded cash disbursement transactions are for the amount of goods or services received and are correctly recorded.

7-25 (Objectives 7-3, 7-4) The following questions concern persuasiveness of evidence. Choose the best response.

Which of the following types of documentary evidence should the auditor consider to be the most reliable?

Which of the following statements concerning audit evidence is true?

Audit evidence can come in different forms with different degrees of persuasiveness. Which of the following is the least persuasive type of evidence?

Which of the following presumptions is correct about the reliability of audit evidence?

7-26 (Objectives 7-5, 7-6) The following questions concern audit documentation. Choose the best response.

Which of the following isnota primary purpose of audit documentation?

During an audit engagement, pertinent data are compiled and included in the audit files. The audit files primarily are considered to be

Although the quantity, type, and content of audit documentation will vary with the circumstances, audit documentation generally will include the

The permanent file of an auditor’s working papers most likely would include copies of the

7-27 (Objective 7-4) The following are examples of documentation typically obtained by auditors:

7-28 (Objective 7-4) The following are examples of audit procedures:

8-25 (Objectives 8-1, 8-3) The following questions concern the planning of the engagement. Select the best response.

Which of the following is an effective audit planning procedure that helps prevent misunderstandings and inefficient use of audit personnel?

8-28 (Objectives 8-2, 8-3, 8-4, 8-5) The following are various activities an auditor does during audit planning.







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