Page 1 of 6CPA REVIEW SCHOOL OF THE PHILIPPINESManilaAUDITING THEORYAUDIT EVIDENCE AND DOCUMENTATIONRelated PSAs: PSA 500(rev) and 230Audit Evidence/PSA 500(rev) – Audit Evidence1. Which statement is incorrect regarding audit evidence?a. Audit evidence is all the information used by the auditor in arriving at the conclusions onwhich the audit opinion is based.b. Audit evidence includes the information contained in the accounting records underlying thefinancial statements and other information.c. Audit evidence is cumulative in nature.d. Auditors are expected to address all information that may exist.2. Accounting records least likely includea. The records of initial entries and supporting records.b. The general and subsidiary ledgers.c. Work sheets and spreadsheets supporting cost allocations.d. Comparable data about competitors (benchmarking).3. Other information that the auditor may use as audit evidence least likely includesa. Minutes of meetings.b. Confirmations from third parties.c. Information obtained by the auditor from such audit procedures as inquiry, observation, andinspection.d. Adjustments to the financial statements that are not reflected in formal journal entries.4. Which statement is correct regarding the sufficiency and appropriateness of audit evidence?a. Sufficiency is the measure of the quality of audit evidence.b. Appropriateness is the measure of the quantity of audit evidence; that is, its relevance andits reliability in … Purchase document to see full attachment
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