Which of the following presumption is correct about the reliability of audit evidence

Auditors often use a client's historical experience and subsequent transactions to evaluate the reasonableness of estimates.   Question options:   True   False

In the assessment of an audit, what are the primary issues for consideration?Select one:   a. All of the others are correct. b. The auditor must be perceived as independent. c. The auditor must be deemed competent. d. The auditor must be perceived as objective.

1.  S1: The concept of materiality would be very important to an auditor in determining transactions that should be validated. S2: The level of assurance expected to be issued affects the amount of procedures to be performed by the practitioner.  Group of answer choices  Both S1 and S2 are incorrect.  Only S2 is correct.  Both S1 and S2 are correct.  Only S1 is correct.  2.  S1: Analytical procedures used as substantive test focuses on detecting material misstatements. S2: The responsible party always prepare a representation that will be subjected to the validation of the practitioner.  Group of answer choices  Only S1 is correct.  Both S1 and S2 are incorrect.  Both S1 and S2 are correct.  Only S2 is correct.  3. S1: After conducting an audit and release of the audit report, the primary responsibility on the fairness of the financial statements remains with the management and those charged with governance of the entity. S2: In recurring audits, the auditor may not send a new…

What do auditors consider when determining the extent to which the internal auditors’ work will affect the auditors’ procedures?     A. The materiality of the account balance or transaction, the risk of material misstatement of the assertions, and the amount of subjectivity involved in evaluating the evidence gathered.   B. Only the risk of material misstatement of the assertions related to the account balance, transaction, or disclosure and the amount of subjectivity involved in evaluating evidence gathered.   C. Only the amount of subjectivity involved in evaluating the evidence gathered.   D. Only the materiality of the account balance or transaction and the risk of material misstatement of the assertions.

Strong internal control will increase the reliability of certain types of evidence and thereby increase the overall quantity of substantive procedures performed by the auditors. True or False True False

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)

Auditors often use a client's historical experience and subsequent transactions to evaluate the reasonableness of estimates.   Question  options:   True   False

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

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