TRUE-FALSE QUESTIONS

1. Risk assessment procedures alone provide sufficient appropriate audit evidence on which to base an audit opinion.

2. The auditor’s selection of audit procedures depends on the accounts and assertions being tested.

3. Auditors are encouraged, but not required, to prepare audit documentation.

4. Audit checklists and audit programs are examples of audit documentation.

5. U.S. auditing standards require that an auditor communicate with a predecessor auditor for an initial audit engagement.

6. The agreed-upon terms of an audit engagement should be documented in an audit program.

7. During risk assessment, the auditor is focused on understanding the risks of all misstatements in the financial statements and related disclosures.

8. The auditor assesses the risk of material misstatement at only the assertion level.