1. Auditors must make decisions regarding what evidence to gather and how much to accumulate.

easy Which of the following is not a decision that must be made by auditors related to evidence?
d a. Audit procedure to use.
b. Sample size.
c. Timing of audit procedures.
d. Each of the above is a decision that must be made.

2. Audit procedures may be performed:

easy a. early in the accounting period being audited.
d b. throughout the period being audited with emphasis on the transactions near the end.
c. shortly after the close of the period being audited.
d. during all three of the above periods.

3. The third standard of fieldwork requires the auditor to accumulate sufficient appropriate
easy evidence to support the opinion issued. Because of the nature of audit evidence, it is:
a a. unlikely the auditor will be completely convinced that the opinion is correct.
b. likely the auditor will be completely convinced that the opinion is correct.
c. unlikely the auditor will arrive at a conclusion.
d. likely that the auditor would change his/her mind about the opinion if he/she took the time
to gather additional evidence.

4. Which of the following forms of evidence is most reliable?

easy a. General ledger account balances.
b b. Confirmation of accounts receivable balance received from a customer.
c. Internal memo explaining the issuance of a credit memo.
d. Copy of month-end adjusting entries.

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

easy a. Effectiveness of client internal controls.
b b. Education of auditor.
c. Independence of information provider.
d. Timeliness.

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

easy a. Qualification of individual providing information.
c b. Auditors direct knowledge.
c. Degree of subjectivity.
d. Degree of objectivity.

7. Calculating the gross margin as a percent of sales and comparing it with previous periods is
easy what type of evidence?
b a. Physical examination.
b. Analytical procedures.
c. Observation.
d. Inquiry
8. Audit evidence obtained directly by the auditor will not be reliable if:
easy a. the auditor lacks the qualifications to evaluate the evidence.
a b. it is provided by the clients attorney.
c. the client denies its veracity.
d. it is impossible for the auditor to obtain additional corroboratory evidence.

9. Appropriate of evidence is a measure of the:

easy a. quantity of evidence.
b b. quality of evidence.
c. sufficiency of evidence.
d. meaning of evidence.

10. Which of the following statements regarding the relevance of evidence is correct?
easy a. To be relevant, evidence must pertain to the question at hand.
a b. To be relevant, evidence must be persuasive.
c. To be relevant, evidence must relate to multiple audit objectives.
d. To be relevant, evidence must be evaluated in terms of the general audit objectives.