#1
Which of the following is NOT a type of auditing procedure?
Regulatory procedures
ExplanationAuditing procedures ensure compliance; regulatory procedures are not part of this assurance process.
#2
In auditing, what is the purpose of substantive procedures?
To detect material misstatements in the financial statements
ExplanationSubstantive procedures directly examine financial statements for inaccuracies or misstatements.
#3
Which of the following is a characteristic of analytical procedures?
They use comparisons and relationships to assess the reasonableness of financial information
ExplanationAnalytical procedures evaluate financial data by comparing and relating different elements for consistency.
#4
What is the primary objective of documentation in auditing?
To provide evidence that the audit was conducted in accordance with auditing standards
ExplanationAudit documentation serves as proof of adherence to auditing standards during the audit process.
#5
Which of the following is NOT typically included in audit documentation?
Client's financial statements
ExplanationAudit documentation comprises records of audit procedures and findings, not the client's financial statements.
#6
Which of the following is an example of an external documentation?
Client's financial statements
ExplanationExternal documentation originates from sources outside the audit firm, such as client-provided financial statements.
#7
Which of the following is NOT a primary objective of audit documentation?
To serve as a substitute for the auditor's judgment
ExplanationAudit documentation supports the auditor's judgment rather than replacing it.