Question 1

Daniel, a junior auditor, attended the inventory count of Flos Office Shop, a large retailer of office supplies and electronics. Daniel watched Flos employees doing the count and reported on whether or not the inventory counts directives were followed. The above procedure is an example of:

a. recalculation/reperformance.

b. observation.

c. inspection.

d. analysis.

Question 2

An audit working paper that shows the detailed evidence and procedures regarding the balance in the accumulated depreciation account for the year under audit will be found in the:

a. planning memorandum in the current file.

b. current file evidence working papers.

c. permanent file working papers.

d. administrative working papers in the current file.

Question 3

The ________ contains information of continuing interest over many years of audits of the same auditee.

Multiple Choice

a. audit administrative file

b. permanent file

c. customer retention filed.

d. audit evidence file

Question 4

External confirmations may be sent out during the stage of

Multiple Choice

a. Tests of controls.

b. Understanding the auditee

c. Substantive test of details.

d. Assessing the risk of material misstatement.

Question 5

A copy of the year end bank reconciliation would likely be kept in the

Multiple Choice

a. Audit evidence papers.

b. Audit administrative papers.

c. General audit procedure papers

d. Permanent file.