When performing substantive tests, beginning the evidence search in the subsequent year is a testing approach used to provide direct evidence regarding which assertion?

Question 10 options:

Rights & Obligations

Completeness

Presentation & Disclosure

Existence

Question 11 (4 points)

Which of the following does not describe a test of controls?

Question 11 options:

Confirming accounts receivable balances with customers.

Inspecting purchase orders for managements authorization.

Inspecting physical assets for unique asset numbers.

Observing the preparation of deposit slips by mail room personnel.

Question 12 (4 points)

An auditors achievement of reasonable assurance that financial statements are free from material misstatement involves all of the following except:

Question 12 options:

Assessing inherent risk

Assessing audit risk

Managing detection risk

Assessing control risk

Question 13 (4 points)

The auditor's experience of 'seeing' a document or 'seeing' a physical asset is the source of evidence when an auditor inspects documents and physical assets.

Question 13 options:

	True
	False

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Question 14 (4 points)

Factual misstatements are detected when performing tests of details.

Question 14 options:

True

False

Question 15 (4 points)

Nonstatistical sampling provides a lower level of assurance than statistical sampling.

Question 15 options:

	True
	False