Which of the following types of evidence would give the highest level of reliability in an audit engagement?
Evidence is usually more reliable when it (1) is obtained from independent sources; (2) is generated internally under effective internal control; (3) is obtained directly by the auditor; (4) is in documentary form, whether paper, electronic, or other medium; and (5) consists of original documents.
What is the strongest audit evidence?
The strongest form of confirmation is the blank positive confirm. A blank positive confirm asks the third-party to report the client's asset balance back to the auditor without the prompt of the company's recorded balance. This guards against the third-party agreeing with the reported balance out of convenience.
Which accounting service provides the highest level of assurance?
audit An audit provides the highest level of assurance. An audit is a methodical review and objective examination of the financial statements, including the verification of specific information as determined by the auditor, or as established by general practice.
Which of the following types of evidence is the most reliable?
Physical evidence is generally much more reliable than testimonial evidence.
Which of the following most likely would give the most assurance concerning the valuation?
Which of the following most likely would give the most assurance concerning the valuation assertion about accounts receivable? Assessing the allowance for uncollectible accounts for reasonableness.
Which of the following is the most objective type of evidence?
Which of the following is the most objective type of evidence? the physical count of securities and cash. Evidence is generally considered appropriate when: it has the qualities of being relevant, objective, and free from known bias.
What are the levels of audit evidence?
The auditor can obtain different types of audit evidence, including physical examination, documentation, analytical procedure, observations, confirmations, inquiries, etc. The type and amount are dependent on the type of organization that is being audited and the required audit scope.
Which type of audit evidence is the most commonly used in an audit?
The most common type of evidence is simply asking the client and employees questions. This is known as inquiries of the client. Inquiries are the most common because they are the easiest type of evidence to obtain and they can result in direct answers to the questions the audit is attempting to ask.
What are the levels of assurance engagement?
There are two common levels of assurance engagements that audit firms normally offer and provide. First is the reasonable assurance and the second is limited assurance engagement. Reasonable assurance is normally expressed in a positive form. It is sometimes called positive assurance.
What level of assurance is provided by the practitioner in a review engagement?
A review engagement provides a moderate level of assurance that the information subject to review is free of material misstatement, this is expressed in the form of negative assurance. 10. The practitioner and the client should agree on the terms of the engagement.
Which of the following forms of evidence is most?
Confirmation of accounts receivable balance is considered to be the most reliable because it…
Which of the following is most likely would give the most assurance concerning the valuation assertion of accounts receivable?
Which of the following most likely would give the most assurance concerning the valuation assertion about accounts receivable? Assessing the allowance for uncollectible accounts for reasonableness.
Which of the following will most likely provide the most assurance concerning the accuracy balance related object for accounts receivable?
Which of the following will likely provide the most assurance concerning the accuracy balance-related objective for accounts receivable? Vouch amounts in the subsidiary ledger to details on shipping documents.
Which of the following provides the most reliable audit evidence?
Audit evidence obtained directly by the auditor (for example, observation of the application of a control) is more reliable than audit evidence obtained indirectly or by inference (for example, inquiry about the application of a control).
Which of the following forms of evidence would an IS auditor consider the most reliable?
Evidence obtained from outside sources is usually more reliable than that obtained from within the organization. Confirmation letters received from outside parties, such as those used to verify accounts receivable balances, are usually highly reliable.
What are the 4 types of audit evidence?
What Are the Types of Audit Evidence?
- Physical examination. …
- Confirmations. …
- Documentary evidence. …
- Analytical procedures. …
- Oral evidence. …
- Accounting system. …
- Reperformance. …
- Observatory evidence.
Oct 14, 2021
Which type of audit evidence is the most reliable and why?
Evidence provided by original documents is more reliable than evidence provided by photocopies or facsimiles, or documents that have been filmed, digitized, or otherwise converted into electronic form, the reliability of which depends on the controls over the conversion and maintenance of those documents.
Which of the following types of audit evidence generally is the most reliable?
(1) Information obtained indirectly from outside sources is the most reliable audit evidence.
What is attestation give examples of attest engagements?
An attestation engagement is an arrangement with a client where an independent third party investigates and reports on subject matter created by a client. Examples of attestation engagements are: Reporting on financial projections made by a client. Reporting on pro forma financial information formulated by a client.
Which of the following best describes high level of assurance?
Which of the following best describes “high level of assurance”? intended users to be satisfied that findings be reported to the intended users.
Which of the following forms of evidence would an is auditor consider the most reliable?
Evidence obtained from outside sources is usually more reliable than that obtained from within the organization. Confirmation letters received from outside parties, such as those used to verify accounts receivable balances, are usually highly reliable.
What are the 4 types of evidence?
There are four types evidence by which facts can be proven or disproven at trial which include:
- Real evidence;
- Demonstrative evidence;
- Documentary evidence; and.
- Testimonial evidence.
Feb 15, 2019
Which of the following audit procedures most likely would provide assurance that a company’s inventory valuation is proper?
Which of the following audit procedures most likely would provide assurance that a manufacturing entity's inventory valuation is proper? Testing the entity's computation of standard overhead rates.
What type of audit evidence would be considered the weakest type?
Without documentation on a control or records regarding the performance of that control, we must rely on inquiry alone. However, inquiry is considered the weakest form of audit evidence, and under many compliance frameworks, isn't alone sufficient.
Why external evidence is more reliable than internal evidence?
An example of evidence from an external party would be a bank confirmation, legal confirmation, or accounts receivable confirmation. The reason external evidence is considered more reliable is because the external party is unbiased and presumably has no reason to deceive the audit team.
What is the most common type of attest engagement?
The most common type of attest engagement is a financial statement audit.
What are types of attestation engagements?
The following are the three types of attestation engagements:
- Examination engagement. …
- Review engagement. …
- Agreed-upon procedures engagement.
What level of assurance is provided by the auditor in an audit engagement?
reasonable assurance In an audit engagement, the auditor provides a high, but not absolute, level of assurance that the information subject to audit is free of material misstatement. This is expressed positively in the audit report as reasonable assurance.
What is the most superior class of evidence?
Primary evidences Primary evidences are the most superior class of evidences. These are those evidences which are expected by the law and admissible and permissible at the first place.
What is known as the strongest type of evidence which comes in a form of number percentage or surveyed type data?
The strongest type of evidence in formal writing is statistical evidence. This ranges from true, hard data presented as a percentage or number, to survey-type data.