Auditing · Topic 6

Audit Evidence, Vouching, and Verification Quiz

Work through 25 multiple-choice questions, one at a time. Submit each answer for feedback. At the end, review your score and see which concepts to revisit.

Review the Q&AAuditing quiz learning path
1. The team selects recorded sales and looks for underlying shipping documents. Which auditing concept best fits this case?
2. The auditor suspects year-end supplier liabilities were omitted. Which auditing concept best fits this case?
3. A customer replies directly to an auditor-controlled confirmation request with a different balance. Which auditing concept best fits this case?
4. An auditor independently recomputes interest on a loan. Which auditing concept best fits this case?
5. Management signs a statement claiming that inventory exists at all locations. Which auditing concept best fits this case?
6. The team selects recorded sales and looks for underlying shipping documents. What is the most appropriate response?
7. The auditor suspects year-end supplier liabilities were omitted. What is the most appropriate response?
8. A customer replies directly to an auditor-controlled confirmation request with a different balance. What is the most appropriate response?
9. An auditor independently recomputes interest on a loan. What is the most appropriate response?
10. Management signs a statement claiming that inventory exists at all locations. What is the most appropriate response?
11. The team selects recorded sales and looks for underlying shipping documents. Which evidence would be most directly useful?
12. The auditor suspects year-end supplier liabilities were omitted. Which evidence would be most directly useful?
13. A customer replies directly to an auditor-controlled confirmation request with a different balance. Which evidence would be most directly useful?
14. An auditor independently recomputes interest on a loan. Which evidence would be most directly useful?
15. Management signs a statement claiming that inventory exists at all locations. Which evidence would be most directly useful?
16. The team selects recorded sales and looks for underlying shipping documents. Which conclusion is best supported by the case?
17. The auditor suspects year-end supplier liabilities were omitted. Which conclusion is best supported by the case?
18. A customer replies directly to an auditor-controlled confirmation request with a different balance. Which conclusion is best supported by the case?
19. An auditor independently recomputes interest on a loan. Which conclusion is best supported by the case?
20. Management signs a statement claiming that inventory exists at all locations. Which conclusion is best supported by the case?
21. The team selects recorded sales and looks for underlying shipping documents. Which shortcut would most directly undermine the work in this case?
22. The auditor suspects year-end supplier liabilities were omitted. Which shortcut would most directly undermine the work in this case?
23. A customer replies directly to an auditor-controlled confirmation request with a different balance. Which shortcut would most directly undermine the work in this case?
24. An auditor independently recomputes interest on a loan. Which shortcut would most directly undermine the work in this case?
25. Management signs a statement claiming that inventory exists at all locations. Which shortcut would most directly undermine the work in this case?
Show the answer key
  1. Vouching for occurrence The direction of testing addresses whether recorded transactions happened.
  2. Testing completeness Liabilities relating to pre-year-end goods may need accrual.
  3. External confirmation exception A discrepancy requires evaluation before drawing a conclusion.
  4. Recalculation Recalculation tests mathematical accuracy of the charge.
  5. Written representation A representation supports evidence but cannot replace necessary procedures.
  6. Trace from the sales journal back to supporting evidence The direction of testing addresses whether recorded transactions happened.
  7. Trace post-year-end cash disbursements and unmatched receipts to the year-end records Liabilities relating to pre-year-end goods may need accrual.
  8. Investigate the difference and determine whether it reflects timing or error A discrepancy requires evaluation before drawing a conclusion.
  9. Apply the contractual rate to the applicable principal and dates Recalculation tests mathematical accuracy of the charge.
  10. Obtain other relevant evidence for material inventory assertions A representation supports evidence but cannot replace necessary procedures.
  11. Independent carrier records linked to recorded sales Trace from the sales journal back to supporting evidence.
  12. Supplier invoices, receipt dates and subsequent payment evidence Trace post-year-end cash disbursements and unmatched receipts to the year-end records.
  13. Direct confirmation, remittance records and dispatch details Investigate the difference and determine whether it reflects timing or error.
  14. Executed loan agreement and independent recomputation Apply the contractual rate to the applicable principal and dates.
  15. Count attendance evidence and appropriate procedures at relevant locations Obtain other relevant evidence for material inventory assertions.
  16. The direction of testing addresses whether recorded transactions happened Independent carrier records linked to recorded sales would support this assessment.
  17. Liabilities relating to pre-year-end goods may need accrual Supplier invoices, receipt dates and subsequent payment evidence would support this assessment.
  18. A discrepancy requires evaluation before drawing a conclusion Direct confirmation, remittance records and dispatch details would support this assessment.
  19. Recalculation tests mathematical accuracy of the charge Executed loan agreement and independent recomputation would support this assessment.
  20. A representation supports evidence but cannot replace necessary procedures Count attendance evidence and appropriate procedures at relevant locations would support this assessment.
  21. Using the same journal listing by itself as confirmation of delivery The direction of testing addresses whether recorded transactions happened.
  22. Sampling only amounts already in the accounts payable ledger Liabilities relating to pre-year-end goods may need accrual.
  23. Recording every difference as an error before checking timing A discrepancy requires evaluation before drawing a conclusion.
  24. Treating the recomputation as proof that all loans were disclosed Recalculation tests mathematical accuracy of the charge.
  25. Concluding existence solely from management’s signed statement A representation supports evidence but cannot replace necessary procedures.

These cases use general auditing principles. Apply the relevant local law and professional standards when evaluating a real engagement. Reference: IAASB standards and pronouncements.