Chapter 6 A Framework for Audit Evidence答案.docxVIP

Chapter 6: A Framework for Audit Evidence Key?1.?Audit evidence is also referred to as an audit opinion.?FALSE?2.?The amount of evidence gathered is not important to an auditor since the quality of the evidence is of primary importance.?FALSE?3.?The auditor uses professional judgment to determine which audit procedures to perform.?TRUE?4.?Individuals receiving confirmations from the auditor are asked to respond directly to the client being audited as to whether they agree or disagree with the information.?FALSE?5.?Assertions are not relevant to an audit because they relate to the auditor and financial statements are managements responsibility instead of the auditors.?FALSE?6.?The type of audit evidence known as inquiry does not ordinarily provide sufficient audit evidence of the absence of a material misstatement, nor is it alone sufficient to test the operating effectiveness of controls.?TRUE?7.?A limitation of observation is that observing a process on one day does not necessarily indicate how the transactions were processed on a different day or over a relevant period of time.?TRUE?8.?Relevance and reliability of evidence make up the appropriateness of audit evidence.?TRUE?9.?Evidence can be directly or indirectly relevant to an assertion.?TRUE?10.?Internal documentation is more reliable to the auditor if the internal control surrounding the documentation is considered strong than if it is considered weak.?TRUE?11.?Documentation that is produced electronically by the clients internal systems is not considered appropriate to the audit process.?FALSE?12.?Confirmation statements from banks are common business documents.?TRUE?13.?Inspection of tangible assets generally provides reliable evidence with the respect to the completeness of the assets, but not necessarily about the existence of the assets.?FALSE?14.?Vouching recorded transactions involves taking a sample from the journal and tracing the items back to the source documents to ensure the transactions occurred