PDA

View Full Version : June 09 - F8 Bit Session 4



siddharth
11-02-09, 06:03 PM
Hi pals,

Questions

1) Which of the following audit procedures is primarily intended to provide evidence as to completeness?

a. Adding the debtor’s aged trial balance
b. Searching for unmatched goods received notes.
c. Confirming debtor’s balances with customers
d. Reviewing the outstanding cheque listing

2) The auditor will check balances from supplier’s statements to the bought ledger in order to

a. Verify the existence of creditors
b. Confirm that the recorded balances are obligations of the entity
c. Determine that the purchases were properly authorized
d. Ascertain the completeness of recorded creditors

3) Which of the following audit procedures is primarily intended to provide evidence as to existence?

a. comparing shipping documents to related sales invoices.
b. Recalculating depreciation expense
c. Confirming recorded debtors with the customers
d. Comparing sales invoices with sales orders

4) What does “sufficient appropriate “ audit evidence mean?

a. The amount of audit evidence that can be obtained given the time budget on the task
b. Adequate evidence has been obtained in the auditor’s professional judgment
c. All material errors have been detected
d. A qualified audit report does not need to be issued.

5) In verifying the valuation of work completed by a construction company, on a long-term building contract, which source of evidence would you consider as most reliable?

a. An independent architect called in to supply a valuation but who has not otherwise been involved with the contract.
b. An architect employed by other party to the contract who has been involved throughout in liaising with the company.
c. An architect employed by the company who has direct responsibility for building work on the contract.
d. An independent but unqualified building surveyor.

Answers will be posted on Sunday

Questions on Internal Control and Control Risk assessment will be posted on Sunday.

Hope to see to more responses

Suze
14-02-09, 10:56 AM
here are my answers

1. Which of the following audit procedures is primarily inended to rovide evidence as to completeness

C - Confirming debtor's balances with customers (this way you are confirming that the receivables actually exists and they are not overstated)

2. The auditor will check balances from supplier's statement to the bought ledger in order to

b - confirm that the recorded balances are obligations of the entity

3. Which of the following audit procedures is primarily intended to provide evidence as to existence?

c - confirming recorded debtors with the customers (I am a little confused with this question)

4. What does "sufficient appropriate" audit evidence mean?

b - adequate evidence has been obtained in the auditor's professional judgement

(because detection risk and they way auditors work (sampling) material errors may never be detected therefore this will not lead to qualification of the f/s. Audit Risk will guide you as to the size of sampling you have to do therefore if lack of time is a factor then more audit staff should be hired)

5. In verifing the valuation of work completed by a construction company, on a long-term building contrace, which source of vidence would you consider as most reliable?

a - An independent architect called in to supply a valuation but who has not otherwise been involved with the contract (For verification purposes in areas which the auditors have no "qualified" knowledge of then an Independent Expert in that field is required............in this case we are talking about building therefore a surveyor will not do.)

siddharth
17-02-09, 07:31 AM
Hi,

Sorry for the delay in posting

Following are the answers for session 4 questions.

1. B. Searching for unmatched goods received notes.

2. D. Ascertain the completeness of recorded creditors

3. C. Confirming recorded debtors with the customers

4. B. Adequate evidence has been obtained in the auditor’s professional judgment

5. A. An independent architect called in to supply a valuation but who has not otherwise been involved with the contract.

Any one who doesn't agree with above answers are welcome for further discussion

doongchen
17-02-09, 07:38 AM
Hi,
Can I join the session.

Warm regards,
doongchen

siddharth
17-02-09, 07:44 AM
Hi Friends

any one who is writing june 2009 f8 can join this session

doongchen you are welcome to join this session

I expect regular response