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Audit Evidence

What would most appropriately describe the risk of incorrect rejection in terms of substantive testing?

Audit Evidence /
What would most appropriately describe the risk of incorrect rejection in terms of substantive testing?

A. The auditor concludes balance is materially correct when in actual fact it is not
B. The auditor concludes that the balance is materially misstated when in actual fact it not
C. The auditor has rejected an item for sample which was material
D. None of the above

What would most appropriately describe the risk of incorrect rejection in terms of substantive testing? Read More »

Audit Evidence

Which of the following statements is not true with respect to management representations obtained as per AAS­11?

Audit Evidence /
Which of the following statements is not true with respect to management representations obtained as per AAS­11?

A. Authenticated copy of relevant minutes of meetings may be regarded as management representation
B. It should always be in working
C. It may be dated prior to the report date
D. It should be addressed to the auditor

Which of the following statements is not true with respect to management representations obtained as per AAS­11? Read More »

Audit Evidence

Which of the following statements is, generally, correct about the reliability of auditevidence?

Audit Evidence /
Which of the following statements is, generally, correct about the reliability of auditevidence?

A. To be reliable, evidence should conclusive rather than persuasive
B. Effective internal control system provides reliable audit evidence
C. Evidence obtained from outside sources routed through the client
D. All are correct.

Which of the following statements is, generally, correct about the reliability of auditevidence? Read More »

Audit Evidence

In an audit of financial statements, substantive tests are audit procedures that___________?

Audit Evidence /
In an audit of financial statements, substantive tests are audit procedures that___________?

A. may be eliminated for an account balance under certain conditions
B. are designed to discover significant subsequent events
C. will increase proportionately when the auditor decreases the assessed level of control risk
D. may be test of transactions, test of balance and analytical procedures

In an audit of financial statements, substantive tests are audit procedures that___________? Read More »

Audit Evidence