TRUE-FALSE QUESTIONS

1. The auditor is expected to obtain evidence about the operating effectiveness of internal control on all audits.

2. When testing controls, the auditor tests only transaction controls.

3. The auditor is expected to perform substantive procedures for each relevant assertion of each significant account and disclosure.

4. Substantive procedures include substantive analytical procedures and tests of details.

5. Once the auditor completes the substantive procedures in Phase IV, the auditor is in a position to issue the audit opinion.

6. If the auditor issues an opinion on the client’s internal controls and the client’s financial statements, the auditor is required to issue two separate reports.

7. In an integrated audit, the auditor reviews management’s documentation of internal control and management’s evaluation and findings related to internal control effectiveness.

8. The results of the auditor’s tests of controls will likely have implications for the substantive procedures the auditor will perform.