The evidence method in use in the previous questionis

A) Analytical procedure

B) inquiry

C) Inspection

D) recakculation

Use audit software to foot and crossfoot the cash disbursements journal and trace the balance to the general ledger. This is which of the followingtests

A) test of balances

B) analytical procedure

C) test of transactions

D) test of control

If the auditor finds extensive control test deviations and significant misstatements while performing substantive tests of transactions and substantive analyticalprocedures,

A) extensive tests of details of balances will need to be performed.

B) the cost of the audit should decrease.

C) the auditor will conclude that internal controls are effective.

D) all of the above.

The ________ is the combination of the types of tests to obtain sufficient appropriate evidence for a cycle. There are likely to be variations in the mix from cycle to cycle depending on the circumstances of the audit.

A) evidence mix

B) testing mix

C) audit process mix

D) procedures mix

Which of the following audit tests is usually theleastcostly toperform?

A) tests of balances

B) substantive tests of transactions

C) tests of controls

D) substantive analytical procedures

Which of the following is true?

A) Tests of details of balances focus on the transactions during the period for both balance sheet and income statement accounts.

B) Tests of details of balances focus on comparisons of recorded amounts to expectations developed by the auditor.

C) Tests of details of balances focus on the auditor's understanding of internal controls.

D) Tests of details of balances focus on the ending general ledger balances for both balance sheet and income statement accounts.

In the context of an audit of financial statements, substantive tests are audit procedures that

A) will increase proportionately with the auditor's reliance on internal control.

B) are designed to discover significant subsequent events.

C) are designed to test for dollar misstatements.

D) may be eliminated under certain conditions

The purpose of tests of controls is to provide reasonable assurance thatthe

A) accounting treatment of transactions and balances is valid and proper.

B) entity has complied with requirements of quality control.

C) internal control procedures are functioning as intended.

D) entity has complied with GAAP disclosure requirements.

When assessing control risk,

A) many auditors use actuarial tables to assist in the control risk assessment process.

B) all controls, including key controls, should be considered.

C) many auditors use a control risk matrix to assist in the control risk assessment process.

D) each control can be used to satisfy only one audit objective.

A(n) ________ control is a control elsewhere in the system that offsets the absence of a keycontrol.

A) alternate

B) compensating

C) design

D) significant

Which type of evidence isnotused by the auditor to obtain an understanding of the design and implementation of internalcontrol?

A) inquiry

B) confirmation

C) inspection

D) observation

Narratives, flowcharts, and internal control questionnaires are three common methodsof

A) designing the audit manual and procedures.

B) documenting the auditor's understanding of a client's organizational structure.

C) documenting the auditor's understanding of internal controls.

D) testing the internal controls.

To maintain proper separation of duties, the employee in the above questioncould not perform which of the followingduties_

A) Sign payroll checks

B) prepare daily cash deposits

C) open mail and prepare a preexisting of cash deposits

D) Cancel supporting documents to prevent reuse