The auditor's assessment of the reliability and sufficiency of the information contained in the underlying accounting records is a part of ______________ a. Audit Test b. Comparison c. Evaluation d. Judgement

An audit plan containsa. Specifications of audit standards relevant to the financial statements being audited.b. Specifications of procedures the auditors believe appropriate for the financial statementsunder audit.c. Documentation of the assertions under audit, the evidence obtained, and the conclusionsreached.d. Reconciliation of the account balances in the financial statements with the account balances in the client’s general ledger.

Auditing is based on the assumption that financial data and statements are A. Verifiable B. Consistently applied C. Presented fairly D. In conformity with appropriate criteria

Outline the sources of audit evidence the auditor can use as part of risk                      assessment procedures.

Analytical procedures are generally used to produce evidence froma. Confirmations mailed directly to the auditors by client customers.b. Physical observation of inventories.c. Relationships among current financial balances and prior balances, forecasts, and nonfinancial data.d. Detailed examination of external, external-internal, and internal documents.

what is the importance of each assertion in the audit of inventories?

The auditors' report is influenced by the idea of materiality.

Define the term "materiality" as it pertains to financial reporting. What is the difference between the auditor's use of materiality during the audit planning stage and throughout the audit final review stage?

The auditor should consider audit risk when planning and performing an audit of financial statements. Audit risk should also be considered together in determining the nature, timing, and extent of auditing procedures and in evaluating the results of those procedures. Required: a. Define audit risk. b. Describe the components of audit risk (e.g., inherent risk, control risk, and detection risk). c. Explain how these components are interrelated. (AICPA, adapted)

Assessment of audit risk is carried out by the auditor at this stage of the audit process:a. Audit planningb. Understanding and testing the design and operation of internal control structuresc. Performing substantive testsd. Issuance of audited financial statementse. All wrong