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Audit Final Exam Practice Questions and Answers 100% Pass
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Audit Final Exam Practice Questions and Answers 100% Pass Which of the following is not one of the four decisions about what evidence to gather and how much of it to accumulate? A) Which audit procedures to use B) Which accounts must agree to the general ledger C) When to perform the procedur...

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  • November 10, 2024
  • 24
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers

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  • audit final exam practice questions and answers 10

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Audit Final Exam Practice Questions and

Answers 100% Pass


Which of the following is not one of the four decisions about what evidence to gather and how much of

it to accumulate?


A) Which audit procedures to use


B) Which accounts must agree to the general ledger


C) When to perform the procedures


D) What sample size to select for a given procedure - ANSWER✔✔-B


Which of the following is not a characteristic of the reliability of evidence?


A) Effectiveness of client internal controls


B) Education of auditor


C) Independence of information provider


D) Timeliness - ANSWER✔✔-B


The auditor must gather sufficient and appropriate evidence during the course of the audit. Sufficient

evidence must:


A) be well documented and cross-referenced in the audit documents.


B) be based on sources that are external to company.



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C) provide evidence that prove or disprove an audit objective/assertion.


D) be persuasive enough to enable the auditor to issue an audit report. - ANSWER✔✔-D


Which of the following forms of evidence would be least persuasive in forming the auditor's opinion

about marketable securities and other investments held by the company?


A) Responses to auditor's questions by the president and controller regarding the investments account


B) Correspondence with a stockbroker regarding the quantity of client's investments held in street name

by the broker


C) Minutes of the board of directors authorizing the purchase of stock as an investment


D) The auditor's count of marketable securities - ANSWER✔✔-A


Determine which of the following is most correct regarding the reliability of audit evidence.


A) Information that is indirectly obtained from external sources is the most reliable audit evidence.


B) Reliability of audit evidence is dependent upon the evidence being subjective.


C) Reliability of evidence refers to the amount of evidence obtained.


D) If internal controls are effective, evidence obtained is more reliable than when the controls are not

effective. - ANSWER✔✔-D


To be considered reliable evidence, confirmations must be controlled by:


A) the client's employee responsible for accounts receivable.


B) the external auditor.


C) the client's internal audit department.



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D) the client's controller or CFO. - ANSWER✔✔-B


A measure of how willing the auditor is to accept that the financial statements may be materially

misstated after the audit is completed and an unqualified opinion has been issued is the:


A) inherent risk.


B) acceptable audit risk.


C) statistical risk.


D) financial risk. - ANSWER✔✔-B


A measure of the auditor's assessment of the likelihood that there are material misstatements in an

account before considering the effectiveness of the client's internal control is called:


A) control risk.


B) acceptable audit risk.


C) statistical risk.


D) inherent risk. - ANSWER✔✔-D


When dealing with audit risk:


A) auditors accept some level of risk in performing the audit function.


B) most risks that auditors encounter are relatively easy to measure.


C) the audit risk model is only used for classes of transactions.


D) most audit firms prefer to use a quantitative assessment for risk - ANSWER✔✔-A


Initial audit planning involves four matters. Which of the following is not one of these?


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