Question 41

3pts

The sufficiency of audit evidence refers to the _______.

Group of answer choices

quality of audit evidence gathered

quantity of audit evidence gathered

logical connection with the assertion being tested

source, form, or nature of the audit evidence

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Question 42

3pts

In audit evidence, which of the following refers to the logical connection with the assertion being tested?

Group of answer choices

Reliability

Sufficiency

Appropriateness

Relevance

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Question 43

3pts

The amount of evidence that an auditor must collect is a function of __________.

Group of answer choices

the risk of material misstatement in a relevant assertion for an account balance or class of transactions

prior years' audit risk

the ability of the client to provide all documentation requested by the auditor

a detailed assessment of the clients' system of internal control

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Question 44

3pts

Auditors communicating directly with a client's bank regarding the existence of the client's cash account balances at year-end would be an example of an:

Group of answer choices

independent source

internal source

illegal communication

audit issue

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Question 45

3pts

Auditors are willing to accept a higher risk that their audit procedures may not detect a material misstatement ________.

Group of answer choices

when control risk is high

when detection risk is high

when control risk is low

when detection risk is low

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Question 46

3pts

An auditors' evaluation of financial information by studying plausible relationships among both financial and non-financial data ________.

Group of answer choices

is referred to as substantive testing

is known as reperformance

is known as recalculation

is referred to as analytical procedures

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Question 47

3pts

Which of the following provides evidence for the occurrence assertion?

Group of answer choices

Visualization

Vouching

Tests of controls

Tracing

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Question 48

3pts

Positive confirmations ask recipients to reply ________.

Group of answer choices

only if they disagree with the information provided. If a response cannot be obtained, auditors assume that the receivable does not exist

in all circumstances. If a recipient does not respond, it is assumed that he/she agrees with the information provided

only if they disagree with the information provided. If a recipient does not respond, it is assumed that he/she agrees with the information provided

in all circumstances. If a response cannot be obtained, auditors must obtain alternative evidence to determine if the balance exists.

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Question 49

3pts

What doauditors consider when determining the extent to which the internal auditors' work will affect the auditors' procedures?

Group of answer choices

The materiality of the account balance or transaction, the risk of material misstatement of the assertions, and the amount of subjectivity involved in evaluating the evidence gathered.

Only the risk of material misstatement of the assertions related to the account balance, transaction, or disclosure and the amount of subjectivity involved in evaluating evidence gathered.

Only the amount of subjectivity involved in evaluating the evidence gathered.

Only the materiality of the account balance or transaction and the risk of material misstatement of the assertions.

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Question 50

3pts

An auditor has just prepared and sent a letter to management detailing weaknesses in internal control. A copy of this letter should be ________.

Group of answer choices

filed with the Securities and Exchange Commission

sent to the client's attorney

placed in the permanent file

placed in the temporary file, and removed when the client corrects the deficiencies