Contain sufficient information to o understand the nature, timing,
19. Audit documentation must contain sur
allow what type of auditor to understand extent, and results of procedures performe a. An
experienced audit team member. . An experienced auditor having no pre
with the engagement.
Any certified public accountant. d. An auditor qualified as a peer review spec
having no previous connection
C.
peer review specialist.
Aaounting estimates
approximation of the amount of an item in the absence of a precise means of measurement a.
Accounting estimate
c. Materiality b. Audit sampling
d. Audit risk
121. In evaluating the reasonableness of an accounting esu
an auditor most likely would concentrate on key factors an assumptions that are a.
Consistent with prior periods. b. Similar to industry guidelines. C. Objective and not
susceptible to bias.
Deviations from historical patterns.
122. In evaluating an entity's accounting estimates, one of an
auditor's objectives is to determine whether the estimates are a. Not subject to
bias. b. Consistent with industry guidelines. c. Based on objective assumptions.
(d. Reasonable in the circumstances.
123. The auditor should adopt one or a combination of the following approaches
in the audit of an accounting estimate:
I. Review and test the process used by management. II. Use an
independent estimate for comparison with
that prepared by management. III. Review subsequent events which
confirm the
estimate made. Any of the above
C. Either I or II b. None of the above
d. I only
a,
u
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