5. Which of the following statements best describes the logical relationship among audits, attest engagements, and assurance engagements? A. All attest engagements are audits, but not all audits involve attestation. B. All assurance engagements, including review, involve attestation. C. An audit provides assurance, but does not involve attestation. D. All audits are attest engagements, but not all attest engagements are audit.

5. Which of the following statements best describes the logical relationship among audits, attest engagements, and assurance engagements? A. All attest engagements are audits, but not all audits involve attestation. B. All assurance engagements, including review, involve attestation. C. An audit provides assurance, but does not involve attestation. D. All audits are attest engagements, but not all attest engagements are audit.

Auditing: A Risk Based-Approach to Conducting a Quality Audit

10th Edition

ISBN:9781305080577

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter6: A Framework For Audit Evidence

Section: Chapter Questions

Problem 21MCQ

See similar textbooks

Similar questions

Determine which of the following is most correct statement regarding the reliability of audit evidence. Select one: a. Reliability of audit evidence is dependent upon the evidence being subjective b. Reliability of evidence refers to the amount of evidence obtained. c. If internal controls are effective, evidence obtained is more reliable than when the controls are not effective. d. Information that is indirectly obtained from external sources is the most reliable audit evidence
1. Describe how the "culmination" of the audit process looks like. 2. In the final stage of a risk-based audit, how shall the auditor know that sufficient appropriate audit evidence has been obtained to support the conclusions reached for the auditor's report to be issued? 3.What are the major reasons for modifying an otherwise unmodified auditor's report?
Which of the following is NOT an assertion relating to 'general presentation and disclosure-related audit objectives'? Select one: A) Completeness B) Accuracy and Valuation C) Occurrence D) cutoff
11 - Which of the following statements is not among the characteristics of the audit function ?A) The audit is carried out by an expert and independent person. B) Auditing is a degree of conformity. C) Auditing is a comparison activity. D) Audit is the process of collecting information and evidence in a subjective way and evaluating these sources. E) A report is prepared after the end of the audit activity.
Which of the following statements about audit evidence is correct? Group of answer choices There should be a one-to-one relationship between audit objective and audit procedure. Audit evidence is more persuasive when items of evidence from different sources or of different nature are consistent Sufficiency is the measure of the quality of audit evidence and its relevance to a particular assertion and its reliability Appropriateness is the measure of the quantity of audit evidence
The objective of the auditor is to plan the audit so that it will be performed in an effective manner. The effectiveness of audit deals with a. It deals with both error free audit opinion and profitable audit O b. Profitable audit c. None of the options d. Error free audit opinion
7. Each of the following steps should be performed prior to accepting an audit engagement except: Select one:a. Identifying special circumstances and unusual risks.b. Evaluating the integrity of management.c. Evaluating independence.d. Making preliminary judgments about materiality levels.
Which of the following BEST (select one) describes why risk assessment can be viewed as the foundation of the audit function: a) Risk assessment provides a framework for allocating limited resources to achieve maximum benefits and value derived from the audit process. b) Risk assessment enables flexibility in approaching audits and the performance of control testing. c) Risk assessment enables an orderly approach to conducting audits. d) Rsk assessment provides for a measurement criteria to evaluate audit results and communicate to management.
which of the following is correct about the appropriateness of evidence? A. Audit evidence from external sources is more relevant than evidence generated internallyB. Audit evidence is more persuasive when items of evidence from different sources or of different nature are not consistentC. Audit evidence generated internally is more reliable when the related accounting and internal control systems are effectiveD. Sufficiency refers to the amount of evidence needed
Which of the following best describes the relationship between auditing and attestationengagements?a. Auditing is a subset of attestation engagements that focuses on the certification of financial statements.b. Attestation is a subset of auditing that provides lower assurance than that provided by anaudit engagement.c. Auditing is a subset of attestation engagements that focuses on providing clients withadvice and decision support.d. Attestation is a subset of auditing that improves the quality of information or its contextfor decision makers
Which of the following statements is correct concerning analytical procedures used in planning an audit engagement?a. They often replace the tests of controls that are performed to assess control risk.b. They typically use financial and nonfinancial data aggregated at a high level.c. They usually involve the comparison of assertions developed by management to ratios calculated by an auditor.d. They are often used to develop an auditor’s preliminary judgment about materiality.
The reliability of evidence depends on the nature and source of the evidence. Which of the following presumption is correct about the reliability of audit evidence? Select one: a. Evidence from sources outside an entity is more reliable than evidence obtained solely from within the entity. b. All the given answers are correct. c. Evidence in the form of documents or written representations is more reliable than oral representations. d. Evidence obtained directly by the auditor is more reliable than evidence obtained from the client.