Of the following, which is the least persuasive type of audit evidence?

A. Bank statements obtained from the client
B. Documents obtained by auditor from third parties directly.
C. Carbon copies of sales invoices inspected by the auditor
D. Computations made by the auditor

Which of the following statements is, generally, correct about the reliability of audit evidence?

A. To be reliable, evidence should conclusive rather than persuasive
B. Effective internal control system provides reliable audit evidence
C. Evidence obtained from outside sources routed through the client
D. All are correct.

In an audit of financial statements, substantive tests are audit procedures that __________?

A. May be eliminated for an account balance under certain conditions
B. Are designed to discover significant subsequent events
C. Will increase proportionately when the auditor decreases the assessed level of control risk
D. May be test of transactions, test of balance and analytical procedures

The nature, timing and extent of substantive procedures is related to assessed level of control risk

A. Randomly
B. Disproportionately
C. Directly
D. Inversely

Which of the following factors is most important in determining the appropriations of audit evidence?

A. The reliability of audit evidence and its relevance in meeting the audit objective
B. The objectivity and integrity of the auditor
C. The quantity of audit evidence
D. The independence of the source of evidence

When is evidential matter, generally, considered sufficient?

A. when it constitutes entire population
B. when it is enough to provide a basis for giving reasonable assurance regarding truthfulness
C. when it is objective and relevant
D. when auditor collects and evaluates it independently

Which of the following is not corroborative evidence?

A. Minutes of meetings
B. Confirmations from debtors
C. Information gathered by auditor through observation
D. Worksheet supporting consolidated financial statements

What would most appropriately describe the risk of incorrect rejection in terms of substantive testing?

A. The auditor concludes balance is materially correct when in actual fact it is not
B. The auditor concludes that the balance is materially misstated when in actual fact it not
C. The auditor has rejected an item for sample which was material
D. None of the above

Which of the following statements is not correct about materiality?

A. Materiality is a relative concept
B. Materiality judgments involve both quantitative and qualitative judgments
C. Auditor’s consideration of materiality is influenced by the auditor’s perception of the needs of an informed decision maker who will rely on the financial statements
D. At the planning state, the auditor considers materiality at the financial statement level only

______the audit risks_______the materiality and_________the audit effort.

A. Lower, higher, lower
B. Lower, lower, higher
C. Higher, lower, lower
D. Lower, higher, higher