3) The permanent audit file would usually include the following:A) client's working trial balanceB) summary of the risk assessment procedures performedC) organizational chart of the company's employeesD) summary of the auditors test of controls for the current years audit Answer: CTerms: Permanent fileDiff: ChallengingObjective: LO 7-6AACSB: Reflective thinking skills4) The permanent files included as part of audit documentation do notnormally include:ATerms: Permanent files as audit documentationDiff: ModerateObjective: LO 7-6AACSB: Reflective thinking skills5) When determining sufficient and appropriate audit evidence in order to form an opinion on theclient's financial statements the auditor compiles audit documentation to support the opinion. Thelargest portion of audit documentation will include detailed supporting schedules prepared by theclient or the auditor in support of specific accounts on the financial statements. The major types of supporting schedules include analysis schedules and tests of reasonableness. Discuss those two schedules and give an example for each schedule.Diff: ModerateObjective: LO 7-6AACSB: Reflective thinking skills36
6) The basis for preparing financial statements for companies is the general ledger. As soon as possible the auditor obtains the general ledger accounts of the client and prepares a working trial balance. Discuss the audit documentation in the current file that relates to the working trial balance. Include a description of lead and support schedules in your answer.
You've reached the end of your free preview.
Want to read all 38 pages?
- Winter '15