Audit Procedures Quiz

For automated controls, the auditor's procedures to determine whether the automated control has been implemented cannot also serve as the test of that control.

• TRUE

• FALSE

Procedures to obtain an understanding of internal control generally provide sufficient appropriate evidence that a control is operating effectively.

• TRUE

• FALSE

Substantive tests are procedures designed to test for dollar misstatements that directly affect the correctness of financial statement balances.

• TRUE

• FALSE

Risk assessment procedures are performed to assess the risk of material misstatement in the financial statements.

• TRUE

• FALSE

Tests of controls should be performed after substantive tests of transactions.

• TRUE

• FALSE

Tests of details of balances emphasize the overall reasonableness of transactions and the general ledger balances.

• TRUE

• FALSE

Auditors must perform tests of controls separately from substantive tests of transactions.

• TRUE

• FALSE

One factor that determines the amount of additional evidence required for tests of controls is the planned reduction in control risk.

• TRUE

• FALSE

Tests of controls are performed to support a reduced assessment of detection risk.

• TRUE

• FALSE

Auditors use substantive analytical procedures and tests of details of balances to satisfy planned control risk.

• TRUE

• FALSE