RINCONADA, REYNALYN B.

BSA-2

TRUE OR FALSE

1. False, because audit evidence is all the information, whether obtained from audit procedures or other
sources, that is used by the auditor in arriving at the conclusions on which the auditor's opinion is based.
Audit evidence consists of both information that supports and corroborates management's assertions
regarding the financial statements or internal control over financial reporting and information that
contradicts such assertions.
2. False, because audit procedures is to obtain audit evidence can include inspection, observation,
confirmation, recalculation, reperformance and analytical procedures, often in some combination, in
addition to inquiry.
3. True, because it generally provides the most reliable evidence.
4. False, because audit documentation is the written record of the basis for the auditor's conclusions that
provides the support for the auditor's representations, whether those representations are contained in the
auditor's report or otherwise. Audit documentation also facilitates the planning, performance, and
supervision of the engagement, and is the basis for the review of the quality of the work because it provides
the reviewer with written documentation of the evidence supporting the auditor's significant conclusions.
Among other things, audit documentation includes records of the planning and performance of the work,
the procedures performed, evidence obtained, and conclusions reached by the auditor. Audit documentation
also may be referred to as work papers or working papers.
5. True, because it be relevant, evidence must pertain to the audit objective of the evidence. Relevance and
reliability of evidence make up the appropriateness of audit evidence.
6. False, because this standard explains what constitutes audit evidence and establishes requirements
regarding designing and performing audit procedures to obtain sufficient. Evidence obtained from a
knowledgeable source that is independent of the company is more reliable.
7. False, because documentation serves multiple purposes: it aids the planning and performance of the audit, it
facilitates and supports review, it helps demonstrate the application of the requirements of applicable
professional standards, and it supports the evaluation of the sufficiency and appropriateness of evidence obt
8. True, because this standard establishes requirements and provides directions that apply when an auditor is
engaged to audit both a company's financial statements. General requiremenwith engagements.
9. True, because audit documentation is the property of the client, and sufficient and appropriate copies
should be retained by the auditor for at least 5 years.
10. True, because the auditor has an ethical, and in some situations a legal, obligation to maintain the
confidentiality of client information...Because audit documentation often contains confidential client
information, the auditor should adopt reasonable procedures to maintain the confidentiality of that
information.” However, auditors are sometimes required by law, regulation or audit contract, fn 3 to
provide a regulator, or a duly appointed representative, access to audit documentation. For example, a
regulator may request access to the audit documentation to fulfill a quality review requirement or to assist
in establishing the scope of a regulatory examination.