Chapter 7: Audit Evidence

Answer the following questions: Multiple Choice Questions:

1. Who of the following parties evaluates audit evidence?
A) CEO B) Accountant C)Management D) D) Auditor
2. An………….is the detailed instruction that explains the audit evidence to
be obtained during the audit.
A) Audit procedure B) Audit Population
C) Audit sampling D) Audit reporting
3. …………of the audit procedures can vary from early in the accounting
period to long after it has ended.
A) The reporting B) The evaluating
C) The timing D) The concluding
4. The auditor must be …………….that the opinion is correct with a high
level of assurance.
A) persuaded B) disagreed
C) Agreed D) Accepted
5. The two determinants of the ……………..of evidence are appropriateness
and sufficiency.
A) Completeness B) Representative
C) persuasiveness D) fulfilment
6. Evidence must be…….. to the audit objective that the auditor is testing
before it can be appropriate
A) Reliable B) Biased
C) New D) Relevant
7. …………evidence is more reliable than evidence that requires considerable
judgment to determine whether it is correct
A) Selective B) Objective
C) Biased D) Subjective
8. ………..: It can refer either to when evidence is accumulated or to the
period covered by the audit
A) Objectivity B) Timeliness
C) Reliability D) Completeness

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9. The auditor's goal is to obtain a sufficient amount of appropriate evidence
at the ………possible total cost.
A) lowest B) maximum
C) highest D) None of the above
10. Which of the following is considered a type of audit evidence?
A) Physical examination B) Recalculation
C) Inspection D) All of the above
11. ………..is a direct means of verifying that an asset actually exists (existence
objective), and to a lesser extent whether existing assets are recorded
(completeness objective).
A) Physical examination B) Recalculation
C) Inspection D) all of the above
12. …………is the receipt of a direct written response from a third party
verifying the accuracy of information that was requested by the auditor.
A) Physical examination B) Recalculation
C) Inspection D) Confirmation

13. …………..is obtaining written or oral information from the client in

response to auditor questions.
A) Recalculation B) Inspection
C) Inquiry D) Physical examination
14. Analytical procedures are less ……than physical examination and
confirmation
A) Used B) costly
C) time consuming D) acceptable
15. ……………………………., is the record of the audit procedures
performed, relevant audit evidence, and conclusions the auditor reached.
A) Audit planning B) Audit control
C) Audit documentation D) Audit supervision

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 Answer key
1. d 2. a 3. c 4.a 5.c
6.d 7.b 8.b 9.a 10.d
11.a 12.d 13.c 14.b 15.c