Chapter 7: A Framework for Audit Evidence Key DOC

Title	Chapter 7: A Framework for Audit Evidence Key
Author	Kekenn Escabas
Pages	16
File Size	28.9 KB
File Type	DOC
Total Downloads	165
Total Views	501

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Chapter 7: A Framework for Audit Evidence Key 1. Audit evidence is also referred to as an audit opinion. FALSE 2. The amount of evidence gathered is not important to an auditor since the quality of the evidence is of primary importance. FALSE 3. Based upon the risk of misstatement, the auditor uses judgment to determine which balances and transactions should be tested in the financial statements. TRUE 4. Assertions are relevant to the audit process because they are the representations of management embodied in the financial statements. TRUE 5. Assertions are not relevant to an audit because they relate to the auditor and financial statements are management's responsibility instead of the auditor's. FALSE 6. Presentation and disclosure assertions state that all transactions and balances are properly presented, and the company has disclosed every financial transaction and arrangement it entered into during the year in the footnotes. FALSE 7. Evidence is generally of higher quality if it involves a member of the audit team actually going out to physically observe it than if it was obtained from another source. TRUE...