Analytical procedures are not used at the planning of the audit, during the audit and at the completion of the audit in order to avoid material misstatement in the financial statements.   Question 3 options:   a) True   b) False

2. To express an opinion on financial statements, the auditor obtains reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error. Select one:TrueFalse

STATEMENT 1: Significant unexpected fluctuations identified by analytical review procedures will usually necessitate a review of internal control. STATEMENT 2: Working papers should generally contain the nature and extent of audit procedures done, the results of any testing, and the CPA's conclusion about how the findings will affect his report. A. Only Statement 1 is incorrect B. Only Statement 1 is correct C. Both statements are incorrect D. Both statements are correct

Question 15       As Review of Financial Statements under SSARS is not considered an audit engagement the accountant need not be independent. Answers: True   False

Financial audit Q&A What risks that may occur during assertion testing, but cannot be prevented due to the lack of time?

Q2. Disaster Recovery Planning Controversy: The relevance of a disaster recovery plan (DRP) to a financial statement audit is a matter of debate. Some argue that the existence of a DRP is irrelevant to the audit. Others argue that is an important control that needs to be considered in the assessment of internal control.   Provide a logical argument why a DRP should not be considered in the audit. Why a DRP is an important control and should be reviewed the conduct of a financial audit

7

b) Which of the following statements regarding additional information that is included in a document containing audited financial statements is not true?   Group of answer choices 1: Additional information can be subject to certain limited procedures by the auditor. 2: Additional information can be the subject of another information opinion. 3: Additional information can be the subject of an in-relation-to opinion. 4: Additional information can be subject to a limited review by the auditor.

An auditor obtains evidence regarding the assertion of Completeness by sending confirmations.   Question 10 options:   True   False

7. Analytical procedures: A. are not a type of audit evidence. B. are not required during the completion phase of the audit. C. performed during the planning phase of the audit are used as a substantive test in support of account balances. D. do not provide reliable evidence unless it is corroborated with other evidence. 8. Reasonable assurance allows for: A. low likelihood that material misstatements will not be prevented or detected by internal controls. B. no likelihood that material misstatements will not be prevented or detected by internal controls. C. moderate likelihood that material misstatements will not be prevented or detected by internal controls. D. high likelihood that material misstatements will not be prevented or detccted by internal controls. 9. Management implements internal controls to ensure that all required footnote disclosures are accurate. Auditors tests those controls to provide evidence supporting the presentation. A. completeness and valuation B.…