Which of the following is not a primary purpose of audit documentation
Which of the following is not a primary purpose of audit documentation. Audit documentation may be in the form of paper, electronic files, or other media. It should be clear from the audit documentation who reviewed specified Study with Quizlet and memorize flashcards containing terms like Because of the risk of material misstatement, an audit should be planned and performed with an attitude of 1. To verify the accuracy of account balances. B) planning and completion phases. Documenting the audit procedures, evidence, and conclusions can help train junior auditors. date It is therefore not surprising that timely preparation of audit documentation (working papers) is a mandatory requirement of ISA 230. Aug 21, 2024 · The following are the benefits of audit documentation: A few years later, the records show auditors how the auditor conducted the audit. Audit documentation can serve many purposes to auditors including being as evidence of their work and conclusion, helping team members in performing audit work including Which of the following best describes why the Sarbanes-Oxley Act of 2002 (SOX) made documentation of business processes essential for businesses? a. 6. Yes Yes No C. A check, issued by the company Nature and purpose of audit documentation. There are no Which of the following best describes one of the primary objectives of audit documentation? A) Defend against claims of a deficient audit. Study with Quizlet and memorize flashcards containing terms like 1) Analytical procedures are so important that they are required during the A) planning and test of control phases. 128; SAS No. Study with Quizlet and memorize flashcards containing terms like Which one of these process should have supporting documents for conclusions reached? a. Confirmation of an account payable balance mailed by and returned directly to the auditor 3. Sufficient audit documentation refer to the record of audit procedures that auditors perform. 134; SAS . Accuracy. Audit Documentation 143 AU-CSection230 Audit Documentation Source: SAS No. Facilitate the planning, performance, and supervision of the audit engagement d. D) To assist in the preparation of the audit report. See full list on pcaobus. B) It should not include copies of any client-generated documents. What Does an Audit Document Include? Audit documents are typically used to show that certain standards in the have been observed and are being met. Study with Quizlet and memorize flashcards containing terms like Use your cursor to match each example to the type of control it describes. Thus, it is a part of the auditors' audit files and is always in written form. Roll-forward work C. 06 For purposes of GAAS, the following Study with Quizlet and memorize flashcards containing terms like The components of the risk of misstatement are: Inherent Risk Control Risk Detection Risk A. Summary of discussions with entity's key decision makers B. To support that the audit was performed in accordance with GAAS. 122; SAS No. Because audit documentation is the written record that provides the support for the representations in the auditor's report, it should: Demonstrate that the engagement complied with the standards of the PCAOB, Specific documentation requirements of other Standards on auditing do not limit its scope. Evaluation of the efficiency and competence of the audit staff assistants by the partner responsible for the audit C. Detection of fraud. D. Find articles, books and online resources providing quick links to the standard, guidance and recent developments. Preventive control - Detective control - Corrective control-, You are performing an audit of Western Electronics Corporation and evaluating various controls. Classify the following controls as being primarily preventive, detective, or corrective. Accounting data developed under satisfactory conditions of internal control are more relevant than data developed under unsatisfactory internal control Audit Documentation 2033 b. None of the points mentioned c. 3. To coordinate the audit. ) To ensure that all appropriate steps in the audit plan were performed B. To assist in preparation of the audit report. To assure that fraudulent financial reporting did not occur. Auditors comments concerning the It also assists audit team members for the whole audit process, starting from the planning stage until the end of the audit engagement. Definition: Audit documentation refers to the records or documentation of procedures that auditors performed, the audit evidence that they obtained and the conclusion that makes by them based on the evidence obtained. The following questions concern audit documentation. Which of the following is required documentation in an audit? A. Difficulty: Medium. To maintain professional judgment Study with Quizlet and memorize flashcards containing terms like Which of the following is not a primary purpose of audit working papers? To coordinate the examination. Which of the following events or activities may occur following the audit report release date? A. Annual Study with Quizlet and memorize flashcards containing terms like Which of the following types of documentary evidence should the auditor consider to be the most reliable? 1. Yes No No D No Yes Yes, Assertions that have a meaningful bearing on whether an account balance, transaction class, or disclosure is fairly stated are referred to as: Appropriate assertions. Cutoff. Audit documentation isthe record of procedures performed,evidence obtained, and conclusions reached as part of an audit. provide the rationale for the inherent risk assessment at the financial statement assertion level. Which of the following events occurring after the audit report release date most likely would cause auditors to make further inquiries about the previously-issued financial Study with Quizlet and memorize flashcards containing terms like Which of the following is a primary purpose of audit documentation?, Which of the following audit procedures probably would provide the most reliable evidence concerning the entity's assertion of rights and obligations related to inventories?, What is the most likely course of action that an auditor would take after determining Use of internal audit software may enhanc e consistency and efficiency. B. SOX mandates that accountants create the business rules and documentation associated with a company's business processes. Audit documentation helps facilitate internal and Study with Quizlet and memorize flashcards containing terms like The permanent (continuing) file of audit documentation most likely would include copies of the:, T/F: Lead schedules would be included in the current audit documentation since they are applicable to the current year's audit only, T/F: Attorney's letters would not be included in the current audit documentation since they are Which of the following is NOT one of the purposes of audit documentation? a. all of the above, Which one of the following DOES NOT require Study with Quizlet and memorize flashcards containing terms like Which of the following statements relating to audit evidence is the most accurate statement? A. In public health, documentation audits look at the documentation related to the public health programs and services. 08): The nature, timing, and extent of audit procedures. Assurance of the consistent application of correct accounting procedures Study with Quizlet and memorize flashcards containing terms like The effectiveness of internal control is not a financial statement assertion made by management. org The following questions concern audit documentation. C) To support the financial statements. To detect errors or irregularities. d. Internal control documents that auditor prepare in Ms words, Ms excel or […] Audit Documentation: An audit is an in-depth examination carried out in an institution to establish compliance with various policies and laws. Documentation audits measure the quality of the documentation against Study with Quizlet and memorize flashcards containing terms like 1. Which of the following is not a primary purpose of audit documentation? \quad\quad (1) To coordinate the audit \quad\quad (2) To assist in preparation of the audit report \quad\quad (3) To support the financial statements AICPA standards on documentation Purpose of audit documentation per AU-C section 230, Audit Documentation, is to provide: • evidence of the auditor's basis for a conclusion about the achievement of the overall objectives of the auditor, and • evidence that the audit was planned and performed in accordance with GAAS and applicable legal and If sufficient appropriate audit evidence necessary to support the audit opinion was not appropriately documented, then the audit was not conducted in accordance with GAAS, and the auditor would not have a basis to render an opinion. copies of those client records examined by the auditor during the course of the engagement B. 123; SAS No. As to audit documentation in general, it seems that many students do not fully appreciate the extent to which audit documentation should be prepared, and its form and content. Which of the following is not a primary purpose of audit working papers or audit documentation? a. Choose the best response. </p><p>Internal documents generated and processed in the absence of adequate internal controls may not be trustworthy evidence What Is Audit Documentation? Audit documentation is a detailed account of procedures, evidence, and conclusions collected during an audit. impartial conservatism. c. ) To ensure that referencing among audit documentation is clear C. Which of the following is not an assertion relating to classes of transactions? A. Which of the following is the least persuasive type of evidence?, Which of the following presumptions is correct about the reliability of Question: 16. Yes Yes Yes B. Which of the following statements is true regarding the use of Audit Data Analytics (ADA)? A) The standard of documentation sufficiency for an ADA is less than that of other audit procedures B) The auditor must exercise professional judgment during the ADA, but does not need to act with professional skepticism C) All misstatements discovered, regardless of materiality, should be included in Feb 14, 2020 · c 3. To support the financial statements. Interim testing B. C) test of control and completion phases. They are a direct aid in the planning of the audit. Documentation of logical step between findings and conclusion. provide information for a Which of the following statements is a false statement regarding audit documentation? a. To gather corroborative evidence. <p>Some external papers, such as land titles, insurance policies, indenture agreements, and contracts, have a high level of trustworthiness since they are nearly always created with great care and are frequently examined by attorneys or other competent professionals. They record the audit evidence to provide support for the auditor's opinion. (3)Valuation of assets and liabilities. Question: 5) Which of the following is not a primary purpose of audit documentation? A) To facilitate the coordination of the audit work. objective judgment. Interim testing normally occurs between the ____ and the ____. Who reviewed specific audit documentation and the date of such re-view. Classification. Provide support for the conclusions reached by the auditor b. The extent, nature, and substance of audit documentation are subject to the auditor’s professional discretion. To prevent legal liability related to the audit performed. The nature and extent of audit documentation for a particular audit, while required to meet professional standards and Office policy, are largely a matter of professional judgment, based on the unique circumstances of each audit. (2)Completeness of recorded assets and liabilities. . Examination of individual transactions to certify their validity. Sufficiency. C. B) To provide evidence of the audit work performed. 2. To maintain professional judgment. (AICPA ADAPTED) d 4. Which of the following is a primary purpose of audit documentation? To prevent legal liability related to the audit performed. It also includes any relevant audit evidence obtained and the conclusion that the auditor reaches. Although the quality, type, and content of audit documentation will vary with the circumstances, audit documentation generally will include the: A. Furthermore, advances in internal audit software utilized by many internal audit departments allow the review of workpapers to occur remotely, such that a member of the audit team and the reviewer need not be in the same geo graphy The auditing standard ISA 230 sets out the documentation requirements for auditors on audit working papers and audit evidence. (4)Effectiveness of internal control. 5. Which of the following is not a primary purpose of audit documentation? Answer: Option 1 -To coordinate the audit. Determination of whether the client's financial statement assertions are fairly stated. Which of the following is not a primary purpose of audit documentation? (1) To coordinate the audit (2) To assist in preparation of the audit report (3) To support the financial statements (4) To provide evidence of the audit work performed Which of the following is not a primary purpose of audit documentation? (1) to coordinate an audit (2) to assist in the preparation of an audit report (3) to support the financial statements (4) to provide evidence of the audit work performed a. What level of documentation is required by the auditing standards? Which of the following is true relating to audit work paper documentation? A) It serves as the basis of review for audit supervisors to determine if sufficient, appropriate evidence has been gathered. , 2) A benefit obtained from using industry averages is that it provides a(n) A We would like to show you a description here but the site won’t allow us. 4. Which of the following is not a primary purpose of audit documentation? 1. Which of the following is a primary purpose of audit documentation? A. Serves as the basis for review of the work Study with Quizlet and memorize flashcards containing terms like Which of the following is the essential purpose of the audit function? A. This includes confirming that: Work was properly performed and supervised. independent integrity. To comply with generally accepted accounting principles. Study with Quizlet and memorize flashcards containing terms like Which of the following is a primary purpose of audit documentation?, Which of the following audit procedures probably would provide the most reliable evidence concerning the entity's assertion of rights and obligations related to inventories?, What is the most likely course of action that an auditor would take after determining Feb 28, 2022 · Question. beginning of the year under audit; audit report release date B. professional skepticism 2. Subsequently discovered facts, 2. It includes working papers, checklists, and memos that support the evidence gathered and the auditor’s findings. Audit documentation refers to the supporting documents or written proof for the conclusions made by an auditor. A flowchart of the client's organization. Documents showing compliance with GAAS (in planning and conducting the audit) b. Jan 4, 2024 · Audit documentation serves as the primary record detailing the audit procedures conducted, the evidence collected, and the conclusions drawn during the engagement. Documentation of Teams findings c. Audit documentation is sometimes called audit working paper or working paper. During an audit engagement, pertinent data are compiled and included in the audit files. Explanation:. Study with Quizlet and memorize flashcards containing terms like Which of the following types of documentary evidence should the auditor consider to be the most reliable?, Audit evidence can come in different forms with different degrees of persuasiveness. An audit program is an example of audit documentation. 07, . The only purpose of audit documentation is to provide evidence that the audit was planned and performed in accordance with auditing standards. , The working papers should contain information on planning the audit work; the nature, timing and extent of the audit procedures performed; _____; and the conclusions drawn leading to an opinion. Purposes of Audit Documentation. A. Find step-by-step Accounting solutions and your answer to the following textbook question: Which of the following is not a primary purpose of audit documentation? a. Which of the following is not an example of audit documentation? A. b. C) It is generally examined and utilized by the client after the audit is What is a Documentation Audit? A documentation audit checks the compliance of documentation to specified requirements and standards. To provide evidence of the audit work performed. C) Provide reasonable assurance that the audit was conducted in accordance with auditing standards. Subsequent events D. , Which of the following business characteristics is not Which of the following is not a purpose of the review of audit documentation by a supervisor during fieldwork? To ensure that the overall scope of the audit was appropriate. Jun 1, 2017 · The experts have found high levels of material nonconformity, and the most common cause has been noncompliance with AU-C Section 230, Audit Documentation. Which of the following is not a primary purpose of audit documentation? (1) To coordinate the audit (2) To assist in preparation of the audit report (3) To support the financial statements (4) To provide evidence of the audit work performed b. To coordinate the examination. A3) Should be prepared so that an experienced auditor, having no prior connection, can understand (. To determine the nature, timing, and extent of substantive procedures to be performed. In fact, one out of every four engagements subject to these enhanced oversights by the Peer Review Program was materially nonconforming due to a lack of adequate audit documentation. Auditor's report on the entity's financial statements C. ) To ensure that the explanations included in the audit documentation are understandable D Which of the following is a primary purpose of audit documentation? A. A sales invoice used by the client and supported by a delivery receipt from an outside trucker 2. , Which of the following is not a financial statement assertion relating to account balances Which of the following is not a purpose of the review of audit documentation by a supervisor during fieldwork? A. 19 The requirement to document who reviewed the audit work performed does not imply a need for each specific working paper to include evidence of review. a. A written engagement letter formalizing the level of services to be provided. Agreements with management regarding the scope or changes in scope of services D. Audit evidence gathered by an auditor from outside an enterprise is reliable. Nature and Purpose: Audit Documentation provides evidence as to whether the overall objective of the auditor was achieved as well as whether it was planned and performed in accordance with Standards of Auditing as also applicable legal and regulatory Must be done on a timely basis - not at the end of the audit! (. Which of the following best describes the primary purpose of audit procedures? a. The primary purpose of audit documentation is meticulously document the planning, execution The primary purpose for obtaining an understanding of internal control during the audit of a nonissuer is to: provide a basis for making constructive suggestions in a management letter. B) Provide a basis for reviewing the work of subordinates. D) planning, test of control, and completion phases. The primary purpose for obtaining an understanding of the entity's environment (including its internal control) in a financial statement audit is a. determine the nature, timing, and extent of further audit tests to be performed. , Which of the following statements describes why a properly designed and executed audit may not detect a material Which of the following is not a primary purpose of audit documentation? a. Provide evidence that the audit was carried out in accordance with GAAS c. To support that the audit was performed in accordance with GAAS D. (1)Existence of recorded assets and liabilities. bfslfsszqrliibfiorcksjkposwrqsnzbowiietpzgaottioic