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51) Inspection consists of looking at a process or procedure being performed by others.Terms: Audit evidenceDiff: ModerateObjective: LO 7-4AACSB: Reflective thinking skills52) A canceled check written by the client, made payable to a local supplier and drawn on the client's bank account is one type of internal document.Terms: Internal documentDiff: EasyObjective: LO 7-4AACSB: Reflective thinking skills
Learning Objective 7-51) Which of the following best describes one of the primary objectives of audit documentation?CTerms: Primary objective of audit documentationDiff: ModerateObjective: LO 7-5AACSB: Reflective thinking skills2) Audit documents:CTerms: Audit documentation for auditDiff: ModerateObjective: LO 7-5AACSB: Reflective thinking skills3) Audit documentation:A) should identify the items tested when the audit procedures involve sampling of transactions or balances.B) does not aid in the preparation of the tax return since accounting and tax rules differ.C) is another term for the audit program.D) should not be given to anyone outside the audit firm, even if a subpoena has been issued. Answer: ATerms: Audit documentation for auditDiff: ModerateObjective: LO 7-5AACSB: Reflective thinking skills
4) Due professional care, the third general standard, is concerned with what is done by the independent auditor and how well it is done. For example, due care in the matter of audit documentation requires that audit documentation of the evidence gathered by the auditor meets which of the following criteria?BDiff: ModerateObjective: LO 7-5AACSB: Reflective thinking skills