When comparing the reliability of external versus internaldocuments, the external documents are generally considered

A.

less reliable.

B.

equally reliable.

C.

more reliable.

D.

unreliable.

When the auditor examines theclient's documents and records to support recorded transactions oramounts, it is commonly referred to as

A.

vouching.

B.

physical examination.

C.

inquiry.

D.

confirmation.

An example of vouching would be to trace from

A.

cancelled cheques to the cash disbursement journal.

B.

the acquisitions journal to supporting vendor invoices.

C.

duplicate bank deposit slips to the cash receipts journal.

D.

receiving reports to the acquisitions journal.

"Use of comparisons and relationships to determine whether account balances or other data appearreasonable" is a definition of

A.

analytical procedures.

B.

tests of balances.

C.

tests of controls.

D.

auditing.

An aspect of analytical procedures is referred to as "attentiondirecting" when it highlights

A.

errors.

B.

areas of improvement.

C.

areas that need more detailed procedures.

D.

irregularities.

To provide reliableevidence, confirmations should be

A.

created and sent to the third parties by the client to be returned to the client.

B.

created and sent to the third parties by the auditors to be returned to the client.

C.

created and sent to the third parties by the client to be returned to the auditor.

D.

created and sent to the third parties by the auditors to be returned to the auditor.