Question

5. Which of the following type of audit evidence is most persuasive.

A. pre-numbered client purchase order forms.

B. auditor computations on client work sheet to cost

C. Actual journal entries

D. bank statements obtained from the client.

9. To provide assurance that each voucher is submitted most likely would examine a sample of paid voucher are

A. stamped paid by the check signer.

B. supported by a vendor invoice

C. pre numbered and accounted for

D. approved for authorized purchases.

12. An auditor analytical procedure suggest that serval      relationship. The result of these procedures most likely in

A. fraud exist in the relevant account balance.

B. Internal controls have not been operating effectively

C. additional audit procedure are required.

D. Management must be contacted to explain the procedures

16. what element is required to prove fraud?

A. intent

B. Preponderance of the evidence

C. confession of the perpetrator

D. Falsification of documentation

17. what is the most cost-effective way to minimize the control

A. detect it

B. prevent it.

C. investigate it.

D. prosecute it and recover damages.

24. the steps taken by the perpetrator to obtain

A. theft act

b. rationalization of thought

c. concealment efforts.

D. conversion efforts.

25. Which of the following combination result in decrees in sample size in variance sampling context?

Tolerable misstatement                                                Variation in Account balance

               Increase                                                                                      Increase

                Decrease                                                                                   Decrease

               Increase                                                                                      Decrease

             Decrease                                                                                       Increase

Answer 1

5. Answer is d. bank statements obtained from the client.

It is because external evidence obtained independent of the client are more Reliable and hence Most Persuasive Audit Evidence.

9. Answer is A. stamped paid by the check signer.

It is because it will act as confirmation from third party and hence more reliable.

12. Answer is C. additional audit procedure are required.

To obain conclusive audit evidence, additional procedures are required.

16. Answer is D. Falsification of documentation

Fraud is proved only when conclusive evidence of Falsification of Documents is obtained. Only Intent cannot prove Fraud.

17. Answer is B. Prevent it.

24. Answer is A. theft act.

25. Answer is TOLERABLE MISSTATEMENT : INCREASE & VARIATION IN ACCOUNT BALANCE: INCREASE.