1 When an auditor selects the posting of a sales invoice and then follows this posting through the accounting and control system to find the source documentation, this is known as

A. Scanning

B. Tracing

C. Analysis

D. Vouching

2 Inquiry involves collecting oral evidence. This evidence

A. Must be corroborated with evidence from other procedures.

B. Can stand alone.

C. Is rarely used.

D. Does not require professional judgment.

3 The test of sufficiency is

A. There are no material misstatements in the financial statements.

B. All evidence is obtained without regard to cost.

C. The auditee would make the same conclusion.

D. Whether your evidential base allows someone else to reach the same conclusion.

4 The evidence considered the least reliable by auditors is

A. Internal documents, such as sales invoice copies produced under conditions of strong internal control.

B. Written representations made by the president of the company.

C. Documentary evidence obtained directly from independent external sources.

D. Direct personal knowledge obtained through physical observation and mathematical recalculation.

5 Audit programs contain descriptions of each audit procedure to be performed. These descriptions should include the nature, timing, and extent of the work. The extent of the procedures refers to

A. The amount of control risk.

B. When the work will be completed (at interim or at year-end).

C. The six general audit techniques (recalculation, confirmation, inquiry, inspection, observation, and analysis).

D. How much work has to be done, including the sample size or the number of reports to be scanned.