EASY ROUND

With Timer (10 seconds)

1 point each

Chapter 6 – Audit Evidence

The information obtained by the auditor in arriving at the
conclusions of which the audit opinion is based is called

A. Audit Evidence
B. Audit Standards
C. Audit Working Papers
D. Audit Assertions

EASY ROUND Chapter 6 – Audit Evidence

 A
Audit Evidence
Chapter 6 – Audit Evidence
The sufficiency and appropriateness of evidential matter is
ultimately based on the

A. Availability of audit evidence

B. Philippines Standards on Auditing
C. Pertinence of the evidence
D. Judgement of the auditor

EASY ROUND Chapter 6 – Audit Evidence

 D
Judgement of the
auditor Chapter 6 – Audit Evidence
Which of the following elements ultimately determines the
specific auditing procedures necessary under circumstances
to afford a reasonable basis for an opinion?
A. Materiality
B. Auditor’s Judgement
C. Relative Risk
D. Reasonable Assurance

EASY ROUND Chapter 6 – Audit Evidence

 B
Auditor’s
Judgement Chapter 6 – Audit Evidence
Which of the following statements concerning audit evidence
is correct?

A. To be appropriate, audit evidence should be both relevant and reliable.

B. Reliable evidence is equivalent to sufficient evidence.

C. The difficulty and expense of obtaining audit evidence concerning an
account balance is a valid basis of omitting the test.

D. A client’s accounting data can be sufficient audit evidence to support

the financial statements.
EASY ROUND Chapter 6 – Audit Evidence
 A
To be appropriate, audit evidence should be both
relevant and reliable

Chapter 6 – Audit Evidence

Competent evidence is best evidence defined as evidence
which

A. Is reasonably free from error and bias and faithfully represents that
which it purports to represent.
B. Is obtained by observing people, property and events.
C. Proves an intermediate fact, or group of facts, from which still other
facts can be inferred.

D. Is supplementary to other evidence already gathered and which tends

to strengthen or confirm it.
EASY ROUND Chapter 6 – Audit Evidence
 A
Is reasonably free from error and bias and
faithfully represents that which it purports to
represent.
Chapter 6 – Audit Evidence
In evaluating the validity of different types of audit evidence,
which of the following generalizations is not correct?

A. Recompilation though valid is restricted in its usefulness due to its

limited scope.
B. The validity of documentary of evidence is independent of the
effectiveness of the control system in which it was created.
C. The validity of confirmations varies directly with the independence of
the party receiving the confirmation.
D. Internally created documentary evidence is considered less valid than
externally created documentary evidence.
EASY ROUND Chapter 6 – Audit Evidence
 C
The validity of confirmations varies directly with
the independence of the party receiving the
confirmation.
Chapter 6 – Audit Evidence
Which of the following statements concerning evidential
matter is true?

A. A client’s accounting data cannot be considered sufficient evidence to

support the financial statements.
B. Competent evidence supporting management’s assertions should be
convincing rather than merely persuasive.
C. Effective internal control contributes little to the reliability of the
evidence created within the entity.
D. The cost of obtaining evidence is not an important consideration to an
auditor in deciding what evidence should be obtained.
EASY ROUND Chapter 6 – Audit Evidence
 A
A client’s accounting data cannot be considered
sufficient evidence to support the financial
statements.
Chapter 6 – Audit Evidence
Which of the following statements regarding audit evidence
would be the least appropriate for an internal auditor to
make?
A. I will consider the level of risk involved when deciding the kind of
evidence I will gather.
B. I do not perform procedures that provide persuasive evidence because
I must obtain convincing evidence.
C. I evaluate both the usefulness of the evidence I can obtain and the cost
to obtain it.
D. I am seldom absolutely certain about the conclusions I reach based on
the evidence I examine.
EASY ROUND Chapter 6 – Audit Evidence
 B
I do not perform procedures that provide
persuasive evidence because I must obtain
convincing evidence.
Chapter 6 – Audit Evidence
Audit evidence can come in different forms with different
degrees of persuasiveness. Which of the following is the least
persuasive type of evidence?
A. Bank statements obtained from the client.

B. Test counts of inventory made by the auditor.

C. Pre numbered purchase order forms.

D. Correspondence from the client’s inventory about litigation.

EASY ROUND Chapter 6 – Audit Evidence

 C
Pre numbered purchase ordered forms.

Chapter 6 – Audit Evidence

Which if the following evidence is the most persuasive?

A. Pre numbered purchase order forms

B. Client worksheets supporting cost allocations.

C. Bank statements obtained from the client.

D. Client representation letter.

EASY ROUND Chapter 6 – Audit Evidence

 A
Bank statements obtained from the client.

Chapter 6 – Audit Evidence

Score
Recap Chapter 6 – Audit Evidence
EASY ROUND II
No Timer (unahan)
2 points each

Chapter 6 – Audit Evidence

A letter in response to an auditor’s inquiry is an example of

A. Documentary evidence

B. Physical testimony

C. Testimonial documentation

D. Testimonial evidence

EASY ROUND Chapter 6 – Audit Evidence

 D
Testimonial Evidence

Chapter 6 – Audit Evidence

In testing the existence assertion for an asset, an auditor
ordinarily works from the

A. Accounting records to the potentially unrecorded items.

B. Accounting records to the supporting evidence.

C. Supporting records to the potentially unrecorded items.

D. Supporting evidence to the accounting records.

EASY ROUND Chapter 6 – Audit Evidence

 B
Accounting records to the supporting evidence.

Chapter 6 – Audit Evidence

 ICEBREAKER

Whichever team wins, has the chance to freeze 1

team from answering the next question.
 ICEBREAKER
1 Game: Charades 
st
Category: Movies (Local or International)
Each team will be given 1 minute to play.
The best approach for verifying the completeness of a
downloaded file containing invoice, payment, and payables
data for goods received is to match
A. Invoices to payments and payables, and payments and payables to
invoices.
B. Invoices to payments and payments to invoices.

C. Invoices to payables and payables to invoices.

D. Invoices to payments, and payments and payables to invoices.

EASY ROUND Chapter 6 – Audit Evidence

 A
Invoices to payments and payables, and
payments and payables to invoices.

Chapter 6 – Audit Evidence

In assessing control risk for purchases, an auditor vouches a sample of
entries in the voucher register to the supporting documents. Which
assertion would this test of controls most likely support?

A. Existence or valuation.

B. Existence or allocation.

C. Existence or completeness.

D. Existence or occurrence.

EASY ROUND Chapter 6 – Audit Evidence

 D
Existence or occurrence.

Chapter 6 – Audit Evidence

Which of the following procedures would an auditor most
likely perform in searching for unrecorded liabilities?

A. Trace a sample of accounts payable entries recorded just before year-

end to the unmatched receiving report file.
B. Compare a sample of purchase orders issued just after year-end with
the year-end accounts payable trial balance.
C. Scan the cash disbursements entries recorded just before the year-end
for indications of unusual transactions.
D. Vouch a sample of cash disbursements recorded just after year-end to
receiving reports and vendor invoices.
EASY ROUND Chapter 6 – Audit Evidence
 D
Vouch a sample of cash disbursements recorded
just after year-end to receiving reports and
vendor invoices.
Chapter 6 – Audit Evidence
The accumulation of source documents and records that
allows the organization to trace accounting entries back to
their initiation is the
A. Audit source codes

B. Audit procedures

C. Audit trail

D. Audit work program

EASY ROUND Chapter 6 – Audit Evidence

 C
Audit Trail

Chapter 6 – Audit Evidence

Test of controls are used to test whether controls are

A. Placed in operation or implemented

B. Operating effectively

C. Properly accumulated into balance sheet totals

D. Properly documented by the client

EASY ROUND Chapter 6 – Audit Evidence

 B
Operating Effectively

Chapter 6 – Audit Evidence

Test of controls

A. Are evaluations of financial information made by a study of plausible

relationships among both financial and non financial data.
B. Are procedures that lend hindsight to amounts and information
disclosed in FS as of balance sheet date.
C. Are concerned with how internal control policies or procedures are
applied.
D. Are intended to detect material misstatements in financial statement
accounts.
EASY ROUND Chapter 6 – Audit Evidence
 C
Are concerned with how internal control policies
or procedures are applied.

Chapter 6 – Audit Evidence

Which of the following best describes risk assessment factors
to be considered in a long-term audit plan?

A. Likelihood of occurrence and cost associated with the negative

consequences.
B. Likelihood of occurrence and impact associated with the risk
assessment.
C. Likelihood of occurrence and cost associated with the risk assessment.

D. Likelihood of occurrence and impact associated with the negative

consequences.
EASY ROUND Chapter 6 – Audit Evidence
 D
Likelihood of occurrence and impact associated
with the negative consequences.

Chapter 6 – Audit Evidence

During a preliminary survey, an auditor found that several accounts
payable vouchers for major suppliers required adjustments for
duplicate payment of prior invoices. This would indicate

A. A need for additional testing to determine related controls and the

current exposure to duplicate payments made to suppliers.
B. The possibility of unrecorded liabilities for the amount of the
overpayments.
C. Insufficient controls in the receiving area to ensure timely notice to the
accounts payable area that goods have been received and inspected.
D. The existence of a sophisticated accounts payable system that
correlates overpayments to open invoices and therefore requires no
further audit concern.
EASY ROUND Chapter 6 – Audit Evidence
 A
A need for additional testing to determine related
controls and the current exposure to duplicate
payments made to suppliers.
Chapter 6 – Audit Evidence
Score
Recap Chapter 6 – Audit Evidence
 DIFFICULT ROUND
With Timer (10 seconds)
3 points each

Chapter 6 – Audit Evidence

 TRUE OR FALSE?
Auditor’s need to obtain evidence on a sufficient
way. Meaning, the auditor must decide whether
the evidence available within time and cost limits
is sufficient to justify the opinion.

FALSE
DIFFICULT ROUND Chapter 6 – Audit Evidence
It is the measure of the quantity of
evidence.

Sufficiency
 TRUE OR FALSE?
The greater the risk, the more audit evidence is
likely to be required.

TRUE

DIFFICULT ROUND Chapter 6 – Audit Evidence

The audit is seeking _________, but not
absolute conclusions.

Reasonable
 TRUE OR FALSE?
The higher the quality of evidence, the higher the
audit evidence that may be required.

FALSE

DIFFICULT ROUND Chapter 6 – Audit Evidence

It is the measure of the quality of sources
and techniques.

Reliability
 ICEBREAKER

Whichever team wins, has the chance to freeze 1 team

from answering the next question.
 ICEBREAKER
2nd Game: Charades 
Category: SONGS (Local or International)
Each team will be given 1 minute to play.
 TRUE OR FALSE?
Generally evidence is more reliable if it comes from a
credible independent source rather than from the auditee.

TRUE

DIFFICULT ROUND Chapter 6 – Audit Evidence

The determination of when it is necessary
to gather corroborating evidence from
different sources is a matter of
Professional Judgement
 TRUE OR FALSE?
Audit evidence provided by photocopied or facsimiles is
more reliable than audit evidence provided by original
documents.

FALSE

DIFFICULT ROUND Chapter 6 – Audit Evidence

The measure of pertinence of the evidence.

Relevance
 ENUMERATION
What are the five types of evidence?

PHYSICAL, TESTIMONIAL,
DOCUMENTARY, ANALYTICAL &
COMPUTATIONS.

DIFFICULT ROUND Chapter 6 – Audit Evidence

It refers to the receipt of a written or oral
response from an independent third party.

Confirmation
 TRUE OR FALSE?
Risk assessment procedures must be supplemented by
further audit procedures in the form of tests of controls
and substantive procedures.

TRUE

DIFFICULT ROUND Chapter 6 – Audit Evidence

 Test where the objective is to examine a
random selection of items, usually
accomplished through statistical sampling
techniques.

Representative Item Test

 TRUE OR FALSE?
Surveys can also be used to solicit the opinions and
experiences of stakeholders or recipients of the auditee’s
products or services.

FALSE

DIFFICULT ROUND Chapter 6 – Audit Evidence

Score
Recap Chapter 6 – Audit Evidence
DIFFICULT ROUND II
Only 1 representative from the
team will answer (w/o timer).
4 points each
The leading team has the chance to choose the players for the first 2 questions.

Chapter 6 – Audit Evidence

It is an examination of documents intended
to determine whether or not a transaction
was recorded.

Tracing
Chapter 6 – Audit Evidence
It is a graphic representation of a process or
system and provides a means for analyzing
complex operations.

Flowcharting
Chapter 6 – Audit Evidence
 ICEBREAKER

Whichever team wins, will choose the

players for the next 3 questions.
 TRUE OR FALSE?
Accounting data alone can be considered a sufficient
support for financial statements.

FALSE

Chapter 6 – Audit Evidence

 TRUE OR FALSE?
Competent evidence, regardless of its form, is both valid
and relevant.

TRUE

Chapter 6 – Audit Evidence

 TRUE OR FALSE?
The difficulty and the expense involved in testing a
particular item are not in themselves a valid basis for
omitting the tests.

TRUE

Chapter 6 – Audit Evidence

 ICEBREAKER

Whichever team wins, has the chance to freeze 1 team

from answering the next question.
 TRUE OR FALSE?
If the auditor has substantial doubt about any assertion of
material significance, the auditor should continue in
forming an opinion and obtain a sufficient competent
evidence to remove the doubt, express a qualified opinion,
or disclaim an opinion.

FALSE
Chapter 6 – Audit Evidence
They are supporting documentation for the
entire audit, the repository for the
accumulated audit evidence.

Working Papers
Chapter 6 – Audit Evidence
 TRUE OR FALSE?
The chief audit executive must control access to
engagement records.

TRUE

Chapter 6 – Audit Evidence

 TRUE OR FALSE?
Working papers are the property of the management and
should generally remain under the control of the internal
audit activity and should be accessible only to authorized
personnel.

FALSE
Chapter 6 – Audit Evidence
It is the entire set of data from which a
sample is selected and about which the
internal auditor wishes to draw
conclusions.
Population
Chapter 6 – Audit Evidence
Score
Recap Chapter 6 – Audit Evidence