Question #1: Which of the following examples of substantive procedures would often be performed prior to year end?

a. searching for unrecorded liabilities

b. testing intangible asset additions

c. attending the client's annual inventory count

d. sending legal letters to confirm outstanding contingent liabilities

Question #2:

Morgan Creek is performing the audit of Element Inc. and is tasked with creating an analytical procedure for interest expense. Which one of the following would influence the reliability of the data used to perform Morgans analytical procedure?

a. if the data were prepared in conformity with GAAP

b. if the data were processed in an online system

c. if the data were developed under a system with adequate controls

d. if the data were developed in a computerized accounting system

Question #3:

Carol Change is working on the audit engagement of Track Co. She is working on the fixed asset section and is performing a procedure to vouch the balance in the fixed assets ledger back to supporting documentation. Which one of the following types of procedures is Carol performing?

a. substantive analytic

b. test of controls

c. test of details

d. risk assessment