(AU 339). It also should be sufficient to permit supervisors and reviewers to understand thenature, timing, extent, and results of the procedures performed and to identify the individuals whoperformed or reviewed the work. Furthermore, audit documentation should be sufficient toindicate adherence to the standards of field work.•Answer (D) is incorrect because GAAS require the documentation of the conclusions, but not thebasis for the auditor's conclusions when the assessed level of control risk is at the maximum levelfor all financial statement assertions.[764]Which of the following statements concerning audit documentation is false?A. An auditor may support an opinion by other means in addition to audit documentation.B. The form of audit documentation should be designed to meet the circumstances of a particularengagement.C. Audit documentation may not serve as a reference source for the client.D. Audit documentation should show that the auditor has obtained an understanding of internalcontrol.•Answer (A) is incorrect because audit documentation provides the principal support for theauditor's report, but additional means may be used to support an opinion.•Answer (B) is incorrect because the form and content of audit documentation vary with thecircumstances.•Answer (C) iscorrect. "Audit documentation is the property of the auditor." Moreover, "Certainaudit documentation may sometimes serve as a useful reference source for the client, but it shouldnot be regarded as a part of, or a substitute for, the client's accounting records."•Answer (D) is incorrect because audit documentation should be sufficient to show that the auditorhas followed the field work standards, for example, that a sufficient understanding of internalcontrol has been obtained to plan the audit and determine the nature, timing, and extent ofsubstantive tests. Show
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Get faster at matching terms Terms in this set (19)In evaluating the reasonableness of an entity's accounting estimates, an auditor normally would be concerned about assumptions that are a.Susceptible to bias. a.Susceptible to bias. An auditor should obtain sufficient knowledge of an entity's information system to understand the a.Safeguards used to limit access to computer facilities. b.Process used to prepare significant accounting estimates. Which of the following procedures would an auditor ordinarily perform first in evaluating management's accounting estimates for reasonableness? a.Develop independent expectations of management's estimates. d.Obtain an understanding of how management developed its estimates. In evaluating the reasonableness of an accounting estimate, an auditor most likely would concentrate on key factors and assumptions that are a.Consistent with prior periods. d.Deviations from historical patterns. In evaluating an entity's accounting estimates, one of an auditor's objectives is to determine whether the estimates are a.Not subject to bias. d.Reasonable in the circumstances. An auditor's working papers serve mainly to a.Provide the principal support for the auditor's report. a.Provide the principal support for the auditor's report. Which of the following statements regarding auditor documentation of the client's internal control is correct? a.Documentation must include flowcharts. d.No one particular form of documentation is necessary, and the extent of documentation may vary. Which statement is correct concerning the deletion of audit documentation? a.Superseded audit documentation should always be deleted from the audit file. b.After the audit has been completed, the auditor should not delete or discard audit documentation. For audits of non-issuer clients, ignoring any particular legal or regulatory requirement audit documentation should be retained a.A minimum of five years. a.A minimum of five years. Which of the following is least likely to be a factor in the auditor's decision about the extent of the documentation of a particular audit area? a.The risk of material misstatement. d.Whether or not the client has an internal audit function. Which of the following is required documentation in an audit in accordance with generally accepted auditing standards? a.A flowchart or narrative of the accounting system describing the recording and classification of transactions for financial reporting. b.An audit program setting forth in detail the procedures necessary to accomplish the engagement's objectives. Which of the following factors most likely would affect an auditor's judgment about the quantity, type, and content of the auditor's working paper? a.The assessed level of control risk. a.The assessed level of control risk. Which of the following documentation is required for an audit in accordance with generally accepted auditing standards? a.A flowchart or an internal control questionnaire that evaluates the effectiveness of the entity's controls. c.An indication in the working papers that the accounting records agree or reconcile with the financial statements. No deletions of audit documentation are allowed after the a.Client's year-end. b.Documentation completion date. At the conclusion of an audit, an auditor is reviewing the evidence gathered in support of the financial statements. With regard to the valuation of inventory, the auditor concludes that the evidence obtained is not sufficient to support management's representations. Which of the following actions is the auditor most likely to take? a.Consult
with the audit committee and issue a disclaimer of opinion. c.Obtain additional evidence regarding the valuation of inventory. An audit supervisor reviewed the work performed by the staff to determine if the audit was adequately performed. The supervisor accomplished this by primarily reviewing which of following? a.Checklists. b.Working papers. Under the requirements of the PCAOB, audit documentation must contain sufficient information to allow what type of auditor to understand the nature, timing, extent, and results of procedures performed? a.An experienced audit team member. b.An experienced auditor having no previous connection with the engagement. Audit documentation for audits performed under the requirements of the Public Company Accounting Oversight Board should be retained for a.The shorter of five years, or the period required by law. c.The longer of 7 years, or the period required by law. Which of the following documentation is not required for an audit in accordance with generally accepted auditing standards? a.A written audit plan setting
forth the procedures necessary to accomplish the auditor's objectives. c.A client engagement letter that summarizes the timing and details of the auditor's planned field-work. Sets with similar termsAudit Quiz Chapter 1146 terms kerrialvarez Study- Audit Completetion50 terms kja12b Sets found in the same folder(Old) Internal Control Evaluation & Control Risk A…52 terms laurenrenay2 (Old) Fraud Risk Assessment & Response to Fraud Ri…30 terms laurenrenay2 (Old) Audit Evidence -Appropriateness/Audit Sampli…34 terms laurenrenay2 (Old) Tests of Inventory/Tests of Purchases, Accou…34 terms laurenrenay2 Other sets by this creatorAudit Final63 terms laurenrenay2 Chapter 17: Financial Reporting Disclosure Require…45 terms laurenrenay2 Chapter 15: Equity26 terms laurenrenay2 Chapter 11: Long-term Liabilities53 terms laurenrenay2 Other Quizlet setsChapter 14: Organizational Culture, Socialization,…19 terms maggiecantor2 Kines CH 20 ankle joints and foot108 terms Annyl94 Chapter 6 Overview of Terms11 terms Chris_Koehn3 chapter 15 Test review part 121 terms taylorlawrrence Which of the following is required documentation in an audit in accordance with Generally Accepted Auditing Standards Group of answer choices?A planning memorandum establishing the timing of the audit procedures and coordinating the assistance of entity personnel.
Which of the following documentation is not required for an audit in accordance with auditing standards?Choice “D” is correct. The auditor is not required to evaluate operating effectiveness as part of obtaining an understanding of internal control, and therefore need not document the basis for this decision.
Which of the following is a documentation requirement that an auditor should follow?Which of the following is a documentation requirement that an auditor should follow in a financial audit in accordance with Government Auditing Standards? The auditor should document the supervisory review of the evidence that supports the findings, conclusions, and recommendations contained in the auditors' report.
What documentation is needed for an audit?When preparing for an audit, you need to counter-check and ensure that all the transaction documents, such as check books, purchases invoices, sales receipts, journal vouchers, bank statements, tax returns, petty cash records and inventory records are in order.
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Which of the following documentation is required for an audit in accordance with generally accepted auditing standards *?
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