Auditing test bank chapter 7.docVIP

Auditing and Assurance Services, 15e (Arens) Chapter 7 Audit Evidence Learning Objective 7-1 1) All evidence must have the same level of persuasiveness. A) True B) False Answer: B Terms: Audit evidence Diff: Easy Objective: LO 7-1 AACSB: Reflective thinking skills 2) Auditors use evidence to help them draw conclusions. A) True B) False Answer: A Terms: Audit evidence Diff: Easy Objective: LO 7-1 AACSB: Reflective thinking skills Learning Objective 7-2 1) Auditors must make decisions regarding what evidence to gather and how much to accumulate. Which of the following is a decision that must be made by auditors related to evidence? A) Sample size Timing of audit procedures Yes Yes B) Sample size Timing of audit procedures No No C) Sample size Timing of audit procedures Yes No D) Sample size Timing of audit procedures No Yes Answer: A Terms: Decision to be made by auditors related to evidence Diff: Easy Objective: LO 7-2 AACSB: Reflective thinking skills 2) Audit procedures are concerned with the nature, extent, and timing in gathering audit evidence. Which, of the following, is true as to the timing of audit procedures? A) Prior to the fiscal year-end of the client Subsequent to the fiscal year-end of the client Yes Yes B) Prior to the fiscal year-end of the client Subsequent to the fiscal year-end of the client No No C) Prior to the fiscal year-end of the client Subsequent to the fiscal year-end of the client Yes No D) Prior to the fiscal year-end of the client Subsequent to the fiscal year-end of the client No Yes Answer: A Terms: Timing of audit procedures Diff: Easy Objective: LO 7-2 AACSB: Reflective thinking skills 3) A(n) ________ is the detailed instruction that explains the audit evidence to be obtained during the audit. A) audit objectives B) audit procedure C) audit assertion D) audit program Answer: B Terms: Audit evidence and audit procedures Diff: Easy Objective: LO 7-2 AACSB: Analy