The following are nine situations, each containing two means of accumulating evidence:1 (Click the icon to view the nine situations.)Requirementsа.Identify the six factors that determine the reliability of evidence.b.For each of the nine situations, state whether the first or second type of evidence is more reliable.С.For each situation, state which of the six factors affected the reliability of the evidence.Requirement a. Identify the six factors that determine the reliability of evidence. (Identify all six from the list below.)A. Analytical proceduresB. Timeliness| C. Inquiries of the clientD. Recalculation] E. Auditor's direct knowledgeOF. Degree of objectivityO G. Documentation] H. Effectiveness of client's internal controlsI. Independence of providerJ. Qualifications of individual providing the informationO K. Confirmation

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Requirement a. Identify the six factors that determine the reliability of evidence. (Identify all six from the list below.) O A. Analytical procedures B. Timeliness OC. Inquiries of the client D. Recalculation OE. Auditor's direct knowledge OF. Degree of objectivity O G. Documentation O H. Effectiveness of client's internal controls O. Independence of provider O J. Qualifications of individual providing the information O K. Confirmation

Requirement a. Identify the six factors that determine the reliability of evidence. (Identify all six from the list below.) O A. Analytical procedures B. Timeliness OC. Inquiries of the client D. Recalculation OE. Auditor's direct knowledge OF. Degree of objectivity O G. Documentation O H. Effectiveness of client's internal controls O. Independence of provider O J. Qualifications of individual providing the information O K. Confirmation

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

Chapter7: Planning The Audit: Identifying, And Responding To The Risk Of Material Misstatement

Section: Chapter Questions

Problem 26MCQ

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Similar questions

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For each of the procedures described in the table below, identify the audit procedure performed and classification of the audit procedure using the following: (Each of the "Audit Procedures" and "Classification of Audit Procedure" may be used once, more than once, or not at all.) Audit Procedures: Classification of Audit Procedure: (1) Analytical procedure (9) Substantive procedures (2) Confirmation (10) Test of controls (3) Inquiry (4) Inspection of records or documents (5) Inspection of tangible assets (6) Observation (7) Recalculation (8) Reperformance Procedure Audit Procedure Classification of Audit Procedure a. Requested responses directly from customers as to amounts due. b. Compared total bad debts this year with the totals for the previous two years. c. Questioned management about likely total uncollectible accounts. d. Watched the accounting clerk record the daily deposit of cash receipts.…
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6-50. An auditor has to determine both the reliability and the relevance of potential audit evidence in order to determine that appropriate audit evidence is gathered. Explain the difference between relevance and reliability. How does an auditor determine the reliability of potential audit evidence? For each of the following items (listed as (1) through (6)), identify whether the auditor has made a judgment error, and if there is a judgment error whether the error relates to evidence reliability or relevance. Organize your answer as follows: Judgment Error Nature of Error Explanation Yes or No Relevance, Reliability, or Both Description of error The auditor receives only 20% of the confirmations that were sent to customers to verify their account balance. The auditor responds by taking another sample of receivables to send out in place of the first sample. The auditor is convinced the first sample is not representative of the population as a whole. The auditor sent a…