auditing exam 2 ch 13

Collectively, procedures performed to obtain an understanding of the entity and its environment, including internal controls, represent the auditor's

risk assessment procedures.

Which of the following would not be considered further audit procedures?

risk assessment procedures

Which of the following audit procedures are used to determine whether all six transaction-related audit objectives have been achieved for each class of transactions?

substantive tests of transactions

You are auditing Rodgers and Company. After performing substantive analytical procedures you conclude that, for the accounts tested, the client's balance appears reasonable. This may indicate that

certain tests of details of balances may be eliminated for those accounts.

In order to promote audit efficiency the auditor considers cost in selecting audit tests to perform. Which of the following audit tests would be the most costly?

tests of details of balances

If no material differences are found using analytical procedures, and the auditor concludes that misstatements are not likely to have occurred,

other substantive tests may be reduced.

Several factors influence the auditor's choice of the types of test procedures to select, including

all of the above.

There is a direct relationship between the ________ transaction-related audit objective and the ________ balance-related audit objective.

all of the above

What type of the following test is used to obtain the most audit evidence?

tests of details of balances

Which audit tests involve physical examination and confirmation?

tests of details of balances

Transaction-related audit objectives would most likely be performed in which phase of the audit process?

perform tests of controls and substantive tests of transactions

Which of the following tests commonly occur together?

substantive tests of transactions and tests of controls

Tests of controls and substantive tests of transactions are an important determinant of the extent of the auditor's use of tests of details of balances. Which of the following is true?

They are likely to be performed prior to the client's end of the fiscal year.

If the auditor finds extensive control test deviations and significant misstatements while performing substantive tests of transactions and substantive analytical procedures,

extensive tests of details of balances will need to be performed.