classify information (1-5) according to its source (that is evidence obtained directly by the auditor, evidence obtained from third parties or evidence from the auditee.) You are an internal auditor at Wolf Limited. The company manufactures and supplies footballmerchandise and often sponsors the local Premier Football League participating clubs withsoccer kits to and tickets to spectators. You are about to perform an audit of the sponsorshipfunds and are required to gather information to achieve the engagement's objectives. Standard2310 requires that internal auditors identify and use sufficient, reliable, relevant and usefulinformation when performing an engagement. You found the following information in theprevious audit file:1. An internal auditor observes one of the weekly draws for football event tickets.2. An internal auditor reviews a signed copy of the report that lists the names of thewinners, the list is compiled by the marketing clerk.3. An internal auditor examines goods received notes received from the club asacknowledgement of receipt of football kits delivered.4. An internal auditor examines a photocopy of the inventory list that will be used duringthe inventory count from the warehouse manager.5. An internal auditor reconciles the number of tickets issued against the list of winners.

solution concept source and reliability of audit evidence The reliability of the…

Answered: lassify information (1-5) according to…

lassify information (1-5) according to its source (that is evidence obtained directly by the auditor, evidence obtained from third parties or evidence from the au

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Which of the following best describes audit data analytics?

A: Audit data analysis refers to examining and evaluating large sets of data in the context of an…

Q: Understand the fundamental principle of reporting and identify the basic contents of the auditors’…

A: Audit: Audit is the process of verification of the compliance of the financial statements. It…

Q: hat does the standard audit report indicate about the audit's scope and the financial statement…

A: Introduction: The financial statements present an entity's financial position, results of…

Q: n which of the following audit type the operational area of the audit is determined by management?

A: The correct answer is b. Internal Audit

Q: The following are types of audits, except: Group of answer choices: Tax Compliance Audit Pro…

A: A process of analysis of financial information to assure its users about its completeness and…

Q: Which of the following statements is/are true with regard to Audit? (A) Auditing is as old as…

A: An audit is an independent examination of financial information of an entity whether profit-oriented…

Q: “qualified audit report” and an audit report with a “disclaimer of opinion”. Please give…

A: Qualified Audit opinion: The Auditor Shall Express Qualified opinion when, the auditor had obtained…

Q: Identify the four phases of the audit. What is the relationship of the four phases to the objective…

A: Auditing is defined as the on-site verification activity, such as inspection or examination, of a…

Q: Question 1 ( Evidence is defined as any information used by the auditor to determine whether the…

A: The audit is the procedure of inspection of books of accounts of an organization by an auditor to…

Q: What is the relationship between the audit procedure and audit evidence used in the auditor's work…

A: Audit working papers contains the findings of the auditor which have been obtained in the course of…

Q: 5.Which of the following documents would be the most reliable evidence for an audit? Group of…

A: As per the Standard on Auditing it the objective of the auditor to form an opinion on the financial…

Q: Name the record in which the auditor records the audit procedures performed, the relevant audit…

A: Auditing means checking the accuracy and reliability of financial statements. In the process of…

Q: What is the auditors’ reporting responsibility for (a) other information accompanying the…

A: Auditors' main responsibility is to express an opinion on the financial statements of an entity that…

Q: Distinguish between management’s and auditor’s responsibility for the ﬁnancial statements being…

A: “Since you have posted multiple questions, we will provide the solution only to the first question…

Q: Briefly discuss any audit evidence that the auditors may consider or may expect during the stage of…

A: Answer:- Audit:- To ensure that all the departments are using a documented system of documenting…

Q: Corroborating evidence is additional evidence which accumulated by the auditor to support the…

A: The supporting documents or working papers collected by the auditor in order to support its audit…

Q: What are auditors’ responsibilities for subsequently discovered facts if these are identified…

A: Subsequently Discovered Facts: These are the facts that become available or known to the auditor…

Q: Financial audit Q&A In the process of obtaining audit evidence, the strongest audit evidence is…

A: audit evidence shows the information data that is collected by auditor to make their conclusion on…

Q: What are the audit procedures for subsequent events and give examples

A: Subsequent event is defined as the occasion which occurred after the reporting duration but before…

Q: Discuss the difference between audit documentation and audit evidence and state why audit evidence…

A: Audit Documentation: Audit documentation, also known as working papers, refers to the records,…

Q: The auditor's report contains a number of important disclosures, and it's important to know what…

A: Introduction : This question tells about a number of important disclosures, and it's important to…

Q: b) Discuss TWO (2) audit procedures to ensure sufficiency of audit evidence

A: There are various audit procedures that are used to ensure the sufficiency of audit evidence. These…

Q: When the auditor uses supporting evidence for amounts posted to account balances with documentary…

A: The term "audit" refers to the process of determining the information's trustworthiness and…

Q: 3. Questions requiring answering briefly (1) List three kinds of audit tests and describe their…

Q: Audit documentation is the written record of the basis for the auditor's conclusions that provides…

A: Audit Documentation:-It refers to the detailed documents and procedures which the auditor performed,…

Q: .“It is the auditors’responsibility to gather sufficient appropriate evidence to reachtheir opinion.…

A: .“It is the auditors’responsibility to gather sufficient appropriate evidence to reachtheir opinion.…

Q: Which of the following audit procedures will apply to obtain the reliable audit evidence relating to…

A: Auditing is the process of inspecting various books of accounting.

Q: vidence is defined as any information used by the auditor to determine whether the quantitative…

A: The auditor checks the reliability and consistency of accounting information.

Q: The following are procedures to obtain audit evidence except: a. Physical examination. b.…

A: Audit is the process of checking and examining books of accounts and financial information in order…

Q: In the auditing process Select one: a. the criteria for evaluating information will not vary…

A: Auditing process means process or procedure of verifying and examining books of account, operations,…

Q: Identify the contents of Form 10-K, Form 10-Q, and Form 8-K. How are auditors involved with the…

A: Securities and Exchange Commission (SEC): SEC is an independent organization of the federal…

Q: An Auditor must perform audit procedures in order to obtain sufficient appropriate audit evidence…

A: An Auditor must perform audit procedures in order to obtain sufficient appropriate audit evidence…

Q: Define the term "materiality" as it pertains to financial reporting. What is the difference between…

A: Financial Statement Materiality:- The effect of omissions and misstatements of information in the…

Question

100%

classify information (1-5) according to its source (that is evidence obtained directly by the auditor, evidence obtained from third parties or evidence from the auditee.)

You are an internal auditor at Wolf Limited. The company manufactures and supplies football
merchandise and often sponsors the local Premier Football League participating clubs with
soccer kits to and tickets to spectators. You are about to perform an audit of the sponsorship
funds and are required to gather information to achieve the engagement's objectives. Standard
2310 requires that internal auditors identify and use sufficient, reliable, relevant and useful
information when performing an engagement. You found the following information in the
previous audit file:
1. An internal auditor observes one of the weekly draws for football event tickets.
2. An internal auditor reviews a signed copy of the report that lists the names of the
winners, the list is compiled by the marketing clerk.
3. An internal auditor examines goods received notes received from the club as
acknowledgement of receipt of football kits delivered.
4. An internal auditor examines a photocopy of the inventory list that will be used during
the inventory count from the warehouse manager.
5. An internal auditor reconciles the number of tickets issued against the list of winners.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Discuss the responsibilities of and auditor’s expert
1.what are the types of opinions expressed in the audit reports by the Certified Auditors
Please use own sentences
1. What is appropriate audit evidence? How does an auditor determine whether the appropriate audit evidence is sufficient to support the opinion expressed in the auditor's report? 2. Explain the types of audit procedures
Justify the auditor's duty to evaluate conformity with applicable rules and regulations. How does this obligation vary between rules and regulations that have a direct impact on financial statements and those that do not?
Which part (paragraph) of the audit report appears first, according to new (ISA) auditing standards A. Opinion paragraph B. Scope paragraph C. Basis of opinion D. Key audit matters
How the relevancy deals in the information to be used as an Audit Evidence? O a. Audit evidence in document form is more relevant O b. Logical connection between purpose of the audit procedure and the assertion under consideration O . Relevancy is increased when obtained from dependent sources O d. Confirmation from the third parties
6. Explain the benefits which an external financial statement audit provides for an auditee.
STATEMENT 1: Audit working papers are the documents accumulated by the auditor showing the procedures performed, audit testing applied, information obtained, and conclusions reached. STATEMENT 2: Audit working papers aid the auditor in the conduct and supervision of the audit engagement. A. Only Statement 1 is incorrect B. Only Statement 1 is correct C. Both statements are incorrect D. Both statements are correct
(Audit) Discuss the types of opinions.
"Other information" is a term that has been used in the audit opinion. An explanation is needed.
Explain each type of audit opinion and give a specific example of when that type of opinion that may be issued.