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CA Final Audit Evidence — practice questions

Explore 35 free Audit Evidence questions in CA Final Auditing. Open each question or exercise to read its content, reference answers and available explanation.

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Audit Evidence questions and exercises with answers

Showing questions 1–30 of 35.

Evidence gathered in a financial audit and filed in working papers is calledRead the answer and worked solution →Audit evidence must beRead the answer and worked solution →An auditor finds a higher risk that the accounts are materially misstated. The auditor shouldRead the answer and worked solution →Which evidence is generally the most reliable for an auditor?Read the answer and worked solution →The reliability of evidence generated inside a company improves whenRead the answer and worked solution →Information the auditor learned first-hand is called what kind of evidence?Read the answer and worked solution →Examining the client records for important evidence is the procedure ofRead the answer and worked solution →An auditor watches an employee count products in a warehouse. This procedure isRead the answer and worked solution →An auditor observes the stock count on December 31. The evidence mainly showsRead the answer and worked solution →A reply sent to the auditor by a third party about an assertion is aRead the answer and worked solution →The auditor independently redoes a process the client already carried out. This isRead the answer and worked solution →At the acceptance and continuance phase, audit evidence includes theRead the answer and worked solution →In the audit planning stage, evidence helps the auditor decideRead the answer and worked solution →Control testing evidence helps set the mix of control tests andRead the answer and worked solution →In the substantive testing stage, evidence is needed to supportRead the answer and worked solution →AI helps collect audit evidence mainly because it can processRead the answer and worked solution →A concern about AI in auditing is that it mayRead the answer and worked solution →Audit data analytics lets an auditor viewRead the answer and worked solution →Big data is characterised by size, variety, veracity andRead the answer and worked solution →A drawback of big data as audit evidence is the chance of moreRead the answer and worked solution →Reconciling and formatting a data set before analytics is calledRead the answer and worked solution →In the first year of using data analytics, the audit may initiallyRead the answer and worked solution →With analytics, bank confirmations and journal entry testing could be doneRead the answer and worked solution →Audit risk under ISA 200 is composed of inherent, control and which other risk?Read the answer and worked solution →Audit risk is the risk that the auditor expressesRead the answer and worked solution →Cash transactions carry higher inherent risk than cheque settlements. Inherent risk relates toRead the answer and worked solution →Duties are not clearly separated in an entity. This most raisesRead the answer and worked solution →Detection risk may arise fromRead the answer and worked solution →Audit working papers help show that the audit wasRead the answer and worked solution →Data an auditor uses across many years is placed in theRead the answer and worked solution →

Worked practice questions

Evidence gathered in a financial audit and filed in working papers is called

  1. A management letter
  2. A trial balance
  3. Audit evidence
  4. An engagement letter
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Correct answer: C. Audit evidence

Information obtained by auditors during the audit and recorded in their working papers is what is termed audit evidence.

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Audit evidence must be

  1. Internal and verbal
  2. Complete and confidential
  3. Sufficient and appropriate
  4. Original and handwritten
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Correct answer: C. Sufficient and appropriate

An auditor needs enough evidence (sufficiency) of good quality (appropriateness) to support the opinion.

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An auditor finds a higher risk that the accounts are materially misstated. The auditor should

  1. Reduce the sample size
  2. Rely on management words
  3. Postpone the audit work
  4. Gather more evidence
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Correct answer: D. Gather more evidence

Because the amount of evidence needed rises with the risk of material misstatement, higher risk calls for more evidence.

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More Auditing topics

Auditor's ReportOverview of Audit of Public Sector UndertakingsInternal AuditStandards on Auditing and Professional EthicsInternational Ethics Standards Board for AccountantsRisk Assessment and Internal ControlSpecial Features of Audit of Banks and Non-Banking Financial CompaniesAuditor's Report on Financial Statements