What is the sufficiency of audit evidence?
Sufficiency is the measure of the quantity of audit evidence. The quantity of audit evidence needed is affected by the following: Risk of material misstatement (in the audit of financial statements) or the risk associated with the control (in the audit of internal control over financial reporting).
When auditing a private company the auditor should obtain an understanding of internal control sufficient to?
27. In an audit of internal control over financial reporting, the auditor must obtain sufficient competent evidence about the design and operating effectiveness of controls over all relevant financial statement assertions related to all significant accounts and disclosures in the financial statements.
What major considerations should the auditor take into account in determining how extensive the review of subsequent events should be?
What major considerations should the auditor consider in determining how extensive the review of subsequent events should be? to the client. All critical accounting policies and practices to be used. and treatments, and the treatment preferred by the auditor.
Which statements is incorrect when auditing in a CIS environment?
59 Cards in this Set
| Which statement is incorrect when auditing in a CIS environment? | d |
|---|---|
| The undesirable characteristics of on-line computer systems least likely include | a |
| Certain general CIS controls that are particularly important to on-line processing least likely include | c |
What is meant by sufficiency of evidence?
Sufficient evidence means evidence sufficient to support a reasonable belief, taking into consideration all relevant factors and circumstances, that it is more likely than not that the Respondent has engaged in a Sanctionable Practice.
What is sufficient audit documentation?
Audit documentation should be prepared in sufficient detail to provide a clear understanding of its purpose, source, and the conclusions reached. Also, the documentation should be appropriately organized to provide a clear link to the significant findings or issues.
Does internal audit have sufficient resources?
In order to be effective, the internal audit function must possess sufficient resources, both in terms of staff numbers and proficiency. The audit committee should devote significant thought and effort to the process of appointing the HIA.
When assessing the internal auditors competence the auditor should obtain information about the?
When assessing the competence of the internal auditors, an independent CPA should obtain information about the: quality of the internal auditors’ working-paper documentation.
Which of the following is a device designed to help the audit team obtain evidence about the accounting and control activities of an audit client?
Auditors will be able to reduce the cost of substantive procedures by an amount more than the control evaluation costs. Which of the following is a device designed to help the audit team obtain evidence about the accounting and control activities of an audit client? A narrative memorandum describing the control system.
Which statement is incorrect for system audit?
The incorrect statement is The auditor should not obtain knowledge about the client’s business to determine the nature, timing and the extent of the audit procedures.
Which of the following types of audit evidence is the most persuasive?
Which of the following types of audit evidence is the most persuasive? Bank statements obtained from the client.
Who determines sufficiency of the evidence?
3d 299 (5th Cir. 2014). An appellate court must decide the question of sufficiency of the evidence, even if another error requires that a case be retried. When evaluating the sufficiency of evidence on appeal, the appellate court is permitted to consider testimony offered by the defendant in his case.
Who determines if there is enough evidence for a trial?
Grand juries
Petit jurors decide whether defendants are guilty. Grand juries decide whether there is enough evidence to warrant a trial.
Which is the method of obtaining audit evidence?
Audit procedures to obtain audit evidence can include inspection, observation, confirmation, recalculation, reperformance and analytical procedures, often in some combination, in addition to inquiry.
Which of the following is required documentation in an audit?
A planning memorandum establishing the timing of the audit procedures and coordinating the assistance of entity personnel.
How do you determine the scope of an audit?
How To Determine A Clear Audit Scope To Improve Effective Audit Management
- First, the scope of audit should be determined by considering a range of factors including:
- Second, the intended thrust of the audit should be considered:
- Third, establish which regulations, standards and codes form the basis for the audit.
Who decides the scope of internal audit?
The internal audit function is established by authority of the board of directors (corporate sector) or the head of the organization (public sector) and its responsibilities are defined in an internal audit charter which is approved by the audit committee.
Is a method of obtaining audit evidence?
How do you determine a company’s going concern?
How to determine if your business is a going concern
- Use ratios to determine where your company stands financially.
- Prepare your annual financial statements.
- Continue monitoring the business and identifying negative trends.