Interim audit work refers to audit work performed in the period from the year end date to the audit report date.
True
False
False
The Rules of Professional Conduct of the provincial institutes suggest that a successor auditor should contact the predecessor auditor to obtain basic information about the client.
True
False
False
The term cutoff refers to the accounting for revenue, expense and other transactions in the proper period.
True
False
True
The permanent file contains information that can be used year over year for the same client.
True
False
True
Audit administrative papers are papers that contain evidence about the administrative department of the client.
True
False
False
Inspection consists of the auditor looking at records and documents or at physical assets.
True
False
True
analytical procedures:
audit evaluation of financial statement accounts by studying and comparing relationships among financial and nonfinancial data.
audit program:
a list of the audit procedures believed necessary to obtain sufficient, competent evidence that will serve as the basis for the audit report.
competent:
(characteristic of evidence) evidence that is valid, relevant and unbiased.
cycle:
set of accounts and business activities that go together in an accounting system.
direct personal knowledge:
audit evidence obtained by eyewitness and physical inspection.
engagement letter:
letter from the auditor to the management of an audit client setting forth the terms of the engagement.
existence:
(as a financial statement assertion) management representation that assets, liabilities, equities, revenue and expenses exist in reality.
external evidence:
documentary evidence obtained directly from independent external sources.
external-internal evidence:
documentary evidence that has originated outside the client's data processing system but which has been received and processed by the client.
interim audit work:
procedures performed several weeks or months before the balance sheet date.
internal evidence:
documents that are produced, circulated and finally stored with the client's information system.
mathematical computations:
(as audit evidence) auditors' own calculations.
negative confirmations:
confirmation letter that requests a reply only if the account balance is considered incorrect.
ownership:
(as a financial statement assertion) another name for the rights assertion, suggesting auditee's possession of legal title to assets.
physical observation:
(as an audit procedure) auditors' actual eyewitness inspection of tangible assets and formal documents.
positive confirmation:
confirmation letter requesting a reply in all cases, whether the account balance is considered correct or incorrect.
second audit partner:
one who reviews the work of the audit team.
specialists:
persons skilled in fields other than accounting and auditing who are not members of the audit team.
tracing:
auditor selects sample items from basic source documents and proceeds forward through the accounting and control system to find the final recording of the accounting transactions.
verbal and written representations (audit evidence):
responses to audit enquiries given by the client's officers, directors, owners and employees.
vouching:
auditor selects sample items from an account and goes backward through the accounting and control system to find the source documentation that supports the item selected.
year-end audit work:
audit procedures performed shortly before and after the balance sheet date.
