Question
1) Suppose on an audit the engagement partner has changed materiality from $10,000,000 to $15,000,000. (Assume this resulted in a change to DR). What is
1) Suppose on an audit the engagement partner has changed materiality from $10,000,000 to $15,000,000. (Assume this resulted in a change to DR). What is the effect of this change on the extent of testing? __________________________________. (The auditor will most likely: A. Use a larger sample for Substantive Testing, or B. Use a smaller sample for Substantive Testing) [Use the choices provided to answer, write out the letter and the choice details. EX: To pick answer A type: A. Use a larger sample for Substantive Testing]
2)
Which of the following types of audit evidence/procedures provides the least assurance of reliability?
| Inquiry with the client's employees.
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| Observation of the clients inventory.
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| Prior months' bank statements obtained from the client.
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| Positive confirmation for Cash received from the Bank.
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Financial Accounting A Business Perspective
Authors: Roger H. Hermanson, James Don Edwards
7th Edition
0072289988, 978-0072289985
