Exam 2 Audit Questions & 100% Perfect Answers 2024

A detailed listing of the specific audit procedures to be used to gather evidence for an account is called the: permanent file. audit program. audit strategy. accounting records. {Ans: audit program.}A management letter: is only required for public company audits. is written by management to the auditor at the start of the audit. contains recommendations for improving significant deficiencies and material weaknesses in internal control discovered during the course of the audit. lists only the material weaknesses discovered during the audi {Ans: contains recommendations for improving significant deficiencies and material weaknesses in internal control discovered during the course of the audit.}The nature of an audit procedure refers to: its purpose and its type. the assessed level of detection risk. when the procedure is performed. the sample size required to perform the procedure. {Ans: its purpose and its type.}The assertion related to recording transactions in the correct accounting period is: completeness. accuracy. cutoff. occurrence. {Ans: cutoff}Which audit procedure is being used when an auditor checks the calculations in a client-prepared spreadsheet? Reperformance. Scanning. Analytical procedure. Recalculation. {Ans: Recalculation.}In a good system of segregation of duties, which of the following duties should be segregated? Authorization of transactions,