Question

30) Which of the following audit tests form the basis for an auditor's report on internal control over financial reporting?               
A) tests of controls                          B) tests of transactions

C) analytical procedures                D) tests of details of balances

31) Which of the following is generally not included in the "evidence mix"?

A) tests of details of balances      B) tests of controls

C) risk assessment procedures    D) substantive tests of transactions

32) When an auditor believes that analytical procedures indicate a reasonable possibility of misstatement, the auditor usually would   
A)

Perform additional tests of controls	Decide to modify tests of details of balances
Yes	Yes

B)

Perform additional tests of controls	Decide to modify tests of details of balances
No	No

C)

Perform additional tests of controls	Decide to modify tests of details of balances
No	Yes

D)

Perform additional tests of controls	Decide to modify tests of details of balances
Yes	No

33) Given the economic and time constraints in which auditors can collect evidence regarding management assertions about the financial statements, the auditor normally gathers evidence that is
A) completely convincing.            B) persuasive.

C) conclusive.                                    D) irrefutable.

34) Which of the following is not a correct combination of terms and related type of audit evidence?

A) recompute — recalculation                    B) inquire — inquiries of client

C) count — physical examination             D) read — documentation

Answer 1

30.) Option - 'A'

Tests of controls form the basis for an auditor's report on internal control over financial reporting.

31.) Option - 'C'

Risk assessment procedures is generally not included in the "evidence mix".

32.) Option - 'C'

33.) Option - 'B'

Given the economic and time constraints in which auditors can collect evidence regarding management assertions about the financial statements, the auditor normally gathers that is persuasive.

34.) Option - 'D'

Read - Documentation is not a correct combination of terms and related type of audit evidence.