1. Which of the following does NOT describe sufficient appropriate audit evidence?

a. the quality of evidence affects the quantity required

b. the sufficiency of the evidence is a matter of professional skepticism

c. sufficiency relates to the quantity of evidence

d. appropriateness relates to the quality of evidence

2. Which of the following is NOT a reason that auditors ensure they understand an entity's internal controls?

a. influences the audit strategy

b. provides evidence of inherent risks

c. required by auditing standards

d. component of the overall audit risk assessment

3. . A sequencing test is performed on the payroll information to ensure all employee numbers have been accounted for. What type of control is this?

a. processing control

b. output control

c. input control

d. logical access control

4. Transactions need to be classified appropriately. This internal control objective relates to all of the following assertions EXCEPT for

a. completeness.

b. allocation.

c. valuation.

d. accuracy.

5. Which of the following accurately describes a checklist or preformatted questionnaire?

a. systematically identifies the most common types of internal control procedures that should be present

b. highlights key activities from initiation to reporting as well as describing what happens in the flow of transactions

c. involves the auditor describing in words each step of the flow of transaction from start to finish

d. involves the auditor summarizing in boxes each step of the flow of transaction from start to finish

6. After controls have been tested, the auditor's next step is to

a. form an audit opinion.

b. document the work.

c. create an audit plan.

d. perform substantive testing.

7. Which of the following is NOT specifically addressed by internal control objectives?

a. timing of revenue recognition entries

b. disclosure in the statements

c. recording of cash receipts

d. amount of inventory recorded