Question Tag: ISA 500

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AAA – Nov 2018 – L3 – Q3 – Audit Completion and Final Review

Training new associates on procedures for gathering and assessing audit evidence

Question

You are the auditor in charge of the audit of Big Bank Plc. Two new associates who recently joined the firm have been assigned to your team, and you need to provide them on-the-job training on the audit process. The training should focus on audit evidence and testing procedures for gathering audit evidence.

Required:

a. Explain six procedures for gathering audit evidence. (6 Marks)

b. Explain to members of your team the terms “sufficient” and “appropriate” audit evidence. (2 Marks)

c. Explain four principles that an auditor uses in assessing the reliability of audit evidence in line with ISA 500. (4 Marks)

d. You have allocated the following audit areas to the two new associates on your team:

i. Bank and cash balances; and
ii. Payroll.

Identify the audit procedures that you will discuss with your team members for substantive testing of the audit areas mentioned above. (8 Marks)

Answer

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Tags: Audit evidence, Bank Balances, ISA 500, Payroll, Substantive Testing
Level: Level 3

Topic: Audit Completion and Final Review

AA – Nov 2014 – L2 – Q2 – Audit Evidence

Discuss factors affecting sufficiency of audit evidence and audit procedures for current liabilities in Radcliffe Co.

Question

Radcliffe Co.

ISA 500 Audit Evidence states that the objective of the auditor is to “design and perform audit procedures in such a way as to enable the auditor to obtain sufficient appropriate audit evidence to be able to draw reasonable conclusions on which to base the auditor’s opinion.”

Required:

a. List and explain the factors which will influence the auditors’ judgment concerning the sufficiency of audit evidence obtained. (4 Marks)

b. You are the audit senior in charge of the audit of Radcliffe Co, a company that has been trading for over 50 years. Radcliffe Co manufactures and sells tables and chairs directly to the public. The company’s year-end is 31 December. Current liabilities are shown on Radcliffe Co’s statement of financial position as follows:

Description	2013	2012
Trade payables	884,824	816,817
Accruals	56,903	51,551
Provision for legal action	60,000	–
Total	1,001,727	868,368

The provision for legal action relates to a claim from a customer who suffered an injury while assembling a chair supplied by Radcliffe Co. The directors of Radcliffe Co dispute the claim, although they are recommending an out-of-court settlement to avoid damaging publicity.

List the substantive audit procedures that you should undertake in the audit of the current liabilities of Radcliffe Co for the year ended 31 December 2013. For each procedure, explain the purpose.

Marks are allocated as follows:

Trade payables (9 Marks)
Accruals (3 Marks)
The provision for legal action (4 Marks)

Answer

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Tags: Audit evidence, Audit Judgment, Current Liabilities, ISA 500, Substantive Procedures
Level: Level 2

Topic: Audit evidence

AA – May 2017 – L2 – SA – Q2 – Audit Evidence

Discussion on sufficiency, reliability, and relevance principles for audit evidence as per ISA 500.

Question

The Auditor is required by ISA 500 to design and perform appropriate audit procedures for obtaining sufficient and appropriate audit evidence.

You are required to:

(a) Identify FIVE factors that an Auditor will consider in determining what constitutes sufficient audit evidence. (5 Marks)
(b) Explain FIVE principles that would assist the Auditor in assessing the reliability of audit evidence. (5 Marks)
(c) Explain FOUR principles that would assist the Auditor in assessing the relevance of audit evidence. (10 Marks)

Answer

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Tags: Audit evidence, ISA 500, Relevance, Reliability, Sufficiency
Level: Level 2

Series: MAY 2017

AA – May 2018 – L2 – Q2 – Audit Evidence

This question addresses the auditor’s determination of sufficient and reliable audit evidence as required by ISA 500.

Question

The auditor is required by ISA 500 to design and perform appropriate audit procedures for obtaining sufficient and appropriate audit evidence.

Required: a. Explain briefly THREE factors that an auditor will consider in determining what constitutes sufficient audit evidence. (6 Marks) b. Explain briefly TWO principles that would assist an auditor in assessing the reliability of the audit evidence. (4 Marks) c. Describe FOUR principles that would assist an auditor in assessing the relevance of audit evidence. (10 Marks)

Answer

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Tags: Audit evidence, ISA 500, Relevance, Reliability, Substantive Testing
Level: Level 2

Topic: Audit evidence
Series: MAY 2018

AA – Nov 2021 – L2 – Q2 – Audit Evidence

Discuss characteristics of good audit evidence and testing procedures for gathering it.

Question

ISA 500 on audit evidence sets out the objective of the auditor is to design and perform audit procedures in such a way to enable him to:
(i) Obtain sufficient and appropriate audit evidence
(ii) Draw reasonable conclusions
(iii) Base his audit opinion

Required:
a. Identify THREE characteristics of a good audit evidence. (3 Marks)
b. List and explain briefly FIVE testing procedures for gathering audit evidence. (10 Marks)
c. What factors will the auditor consider when assessing the reliability of audit evidence? (7 Marks)
(Total 20 Marks)

Answer

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Tags: Audit evidence, ISA 500, Reliability, Testing Procedures
Level: Level 2

Topic: Audit evidence
Series: NOV 2021

AA – Nov 2018 – L2 – Q6 – Audit Evidence

Explains the factors auditors consider for sufficient evidence, reliability principles, and steps to take when audit evidence is insufficient.

Question

The auditor is required by ISA 500 to design and perform appropriate audit procedures for obtaining sufficient and appropriate audit evidence.

Required:
a. Identify five factors that an auditor will consider in determining what constitutes sufficient audit evidence.
(5 Marks)

b. Explain five principles that would assist the auditor in assessing the reliability of audit evidence.
(5 Marks)

c. What steps must the auditor take if he discovers that the evidence obtained is insufficient to form an opinion?
(5 Marks)

Answer

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Tags: Audit evidence, Audit Testing, ISA 500, Reliability, Sufficient Evidence
Level: Level 2

Topic: Audit evidence
Series: NOV 2018

AA – Dec 2022 – L2 – Q3a – Audit and Assurance Evidence

Outlines five general principles from ISA 500 for assessing the reliability of audit evidence provided by a client

Question

You have been asked by your Audit Manager to assess the audit evidence provided by a client, a small company owned by Mr. and Mrs. Randolph-Phillips. You observed that the files have been neatly packaged and well referenced. You are however skeptical as to the quality of evidence provided because the year’s audit encountered many difficulties.

Required:
Outline FIVE (5) general principles in accordance with ISA 500: Audit Evidence, that will assist you in assessing the reliability of the audit evidence received.

Answer

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Tags: Audit evidence, Audit Principles, Audit Process, ISA 500, Reliability
Level: Level 2

Topic: Audit and Assurance Evidence
Series: DEC 2022

AA – May 2020 – L2 – Q3a – Audit and Assurance Evidence

Explain the main assertions about account balances and give examples from the audit of trade receivables.

Question

Audit Evidence requires the auditor to obtain sufficient, appropriate evidence to be able to draw reasonable conclusions on which to base the audit opinion. That evidence should be relevant to the financial statement assertions.

Required:
i) Explain the main assertions about account balances and provide an example of each one by reference to the audit of trade receivables. (8 marks)

ii) Identify FIVE (5) of the seven main audit testing procedures (e.g., inspection) and give an example of how each might be used in the audit of plant and machinery. State the assertion being tested in each case. (5 marks)

Answer

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Tags: Audit evidence, Financial statement assertions, ISA 500, Trade receivables
Level: Level 2

Topic: Audit and Assurance Evidence
Series: MAY 2020

AA – Aug 2022 – L2 – Q5b – Audit and Assurance Evidence

States factors that influence the reliability of audit evidence.

Question

ISA 500: Audit Evidence requires among other things that audit evidence must be reliable.
Required:
State FOUR (4) factors that influence the reliability of audit evidence.

Answer

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Tags: Audit evidence, ISA 500, Reliability
Level: Level 2

Series: AUG 2022

AAA – Nov 2018 – L3 – Q3 – Audit Completion and Final Review

Training new associates on procedures for gathering and assessing audit evidence

Question

Required:

a. Explain six procedures for gathering audit evidence. (6 Marks)

b. Explain to members of your team the terms “sufficient” and “appropriate” audit evidence. (2 Marks)

c. Explain four principles that an auditor uses in assessing the reliability of audit evidence in line with ISA 500. (4 Marks)

d. You have allocated the following audit areas to the two new associates on your team:

i. Bank and cash balances; and
ii. Payroll.

Identify the audit procedures that you will discuss with your team members for substantive testing of the audit areas mentioned above. (8 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Audit evidence, Bank Balances, ISA 500, Payroll, Substantive Testing
Level: Level 3

Topic: Audit Completion and Final Review

AA – Nov 2014 – L2 – Q2 – Audit Evidence

Discuss factors affecting sufficiency of audit evidence and audit procedures for current liabilities in Radcliffe Co.

Question

Radcliffe Co.

Required:

a. List and explain the factors which will influence the auditors’ judgment concerning the sufficiency of audit evidence obtained. (4 Marks)

Description	2013	2012
Trade payables	884,824	816,817
Accruals	56,903	51,551
Provision for legal action	60,000	–
Total	1,001,727	868,368

List the substantive audit procedures that you should undertake in the audit of the current liabilities of Radcliffe Co for the year ended 31 December 2013. For each procedure, explain the purpose.

Marks are allocated as follows:

Trade payables (9 Marks)
Accruals (3 Marks)
The provision for legal action (4 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Audit evidence, Audit Judgment, Current Liabilities, ISA 500, Substantive Procedures
Level: Level 2

Topic: Audit evidence

AA – May 2017 – L2 – SA – Q2 – Audit Evidence

Discussion on sufficiency, reliability, and relevance principles for audit evidence as per ISA 500.

Question

The Auditor is required by ISA 500 to design and perform appropriate audit procedures for obtaining sufficient and appropriate audit evidence.

You are required to:

(a) Identify FIVE factors that an Auditor will consider in determining what constitutes sufficient audit evidence. (5 Marks)
(b) Explain FIVE principles that would assist the Auditor in assessing the reliability of audit evidence. (5 Marks)
(c) Explain FOUR principles that would assist the Auditor in assessing the relevance of audit evidence. (10 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Audit evidence, ISA 500, Relevance, Reliability, Sufficiency
Level: Level 2

Series: MAY 2017

AA – May 2018 – L2 – Q2 – Audit Evidence

This question addresses the auditor’s determination of sufficient and reliable audit evidence as required by ISA 500.

Question

The auditor is required by ISA 500 to design and perform appropriate audit procedures for obtaining sufficient and appropriate audit evidence.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Audit evidence, ISA 500, Relevance, Reliability, Substantive Testing
Level: Level 2

Topic: Audit evidence
Series: MAY 2018

AA – Nov 2021 – L2 – Q2 – Audit Evidence

Discuss characteristics of good audit evidence and testing procedures for gathering it.

Question

Answer

Find Related Questions by Tags, levels, etc.

Tags: Audit evidence, ISA 500, Reliability, Testing Procedures
Level: Level 2

Topic: Audit evidence
Series: NOV 2021

AA – Nov 2018 – L2 – Q6 – Audit Evidence

Explains the factors auditors consider for sufficient evidence, reliability principles, and steps to take when audit evidence is insufficient.

Question

The auditor is required by ISA 500 to design and perform appropriate audit procedures for obtaining sufficient and appropriate audit evidence.

Required:
a. Identify five factors that an auditor will consider in determining what constitutes sufficient audit evidence.
(5 Marks)

b. Explain five principles that would assist the auditor in assessing the reliability of audit evidence.
(5 Marks)

c. What steps must the auditor take if he discovers that the evidence obtained is insufficient to form an opinion?
(5 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Audit evidence, Audit Testing, ISA 500, Reliability, Sufficient Evidence
Level: Level 2

Topic: Audit evidence
Series: NOV 2018

AA – Dec 2022 – L2 – Q3a – Audit and Assurance Evidence

Outlines five general principles from ISA 500 for assessing the reliability of audit evidence provided by a client

Question

Required:
Outline FIVE (5) general principles in accordance with ISA 500: Audit Evidence, that will assist you in assessing the reliability of the audit evidence received.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Audit evidence, Audit Principles, Audit Process, ISA 500, Reliability
Level: Level 2

Topic: Audit and Assurance Evidence
Series: DEC 2022

AA – May 2020 – L2 – Q3a – Audit and Assurance Evidence

Explain the main assertions about account balances and give examples from the audit of trade receivables.

Question

Required:
i) Explain the main assertions about account balances and provide an example of each one by reference to the audit of trade receivables. (8 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Audit evidence, Financial statement assertions, ISA 500, Trade receivables
Level: Level 2

Topic: Audit and Assurance Evidence
Series: MAY 2020

AA – Aug 2022 – L2 – Q5b – Audit and Assurance Evidence

States factors that influence the reliability of audit evidence.

Question

ISA 500: Audit Evidence requires among other things that audit evidence must be reliable.
Required:
State FOUR (4) factors that influence the reliability of audit evidence.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Audit evidence, ISA 500, Reliability
Level: Level 2

Series: AUG 2022

Question Tag: ISA 500

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AAA – Nov 2018 – L3 – Q3 – Audit Completion and Final Review

Training new associates on procedures for gathering and assessing audit evidence

You're reporting an error for "AAA – Nov 2018 – L3 – Q3 – Audit Completion and Final Review"

AA – Nov 2014 – L2 – Q2 – Audit Evidence

Discuss factors affecting sufficiency of audit evidence and audit procedures for current liabilities in Radcliffe Co.

You're reporting an error for "AA – Nov 2014 – L2 – Q2 – Audit Evidence"

AA – May 2017 – L2 – SA – Q2 – Audit Evidence

Discussion on sufficiency, reliability, and relevance principles for audit evidence as per ISA 500.

You're reporting an error for "AA – May 2017 – L2 – SA – Q2 – Audit Evidence"

AA – May 2018 – L2 – Q2 – Audit Evidence

This question addresses the auditor’s determination of sufficient and reliable audit evidence as required by ISA 500.

You're reporting an error for "AA – May 2018 – L2 – Q2 – Audit Evidence"

AA – Nov 2021 – L2 – Q2 – Audit Evidence

Discuss characteristics of good audit evidence and testing procedures for gathering it.

You're reporting an error for "AA – Nov 2021 – L2 – Q2 – Audit Evidence"

AA – Nov 2018 – L2 – Q6 – Audit Evidence

Explains the factors auditors consider for sufficient evidence, reliability principles, and steps to take when audit evidence is insufficient.

You're reporting an error for "AA – Nov 2018 – L2 – Q6 – Audit Evidence"

AA – Dec 2022 – L2 – Q3a – Audit and Assurance Evidence

Outlines five general principles from ISA 500 for assessing the reliability of audit evidence provided by a client

You're reporting an error for "AA – Dec 2022 – L2 – Q3a – Audit and Assurance Evidence"

AA – May 2020 – L2 – Q3a – Audit and Assurance Evidence

Explain the main assertions about account balances and give examples from the audit of trade receivables.

You're reporting an error for "AA – May 2020 – L2 – Q3a – Audit and Assurance Evidence"

AA – Aug 2022 – L2 – Q5b – Audit and Assurance Evidence

States factors that influence the reliability of audit evidence.

You're reporting an error for "AA – Aug 2022 – L2 – Q5b – Audit and Assurance Evidence"

AAA – Nov 2018 – L3 – Q3 – Audit Completion and Final Review

Training new associates on procedures for gathering and assessing audit evidence

You're reporting an error for "AAA – Nov 2018 – L3 – Q3 – Audit Completion and Final Review"

AA – Nov 2014 – L2 – Q2 – Audit Evidence

Discuss factors affecting sufficiency of audit evidence and audit procedures for current liabilities in Radcliffe Co.

You're reporting an error for "AA – Nov 2014 – L2 – Q2 – Audit Evidence"

AA – May 2017 – L2 – SA – Q2 – Audit Evidence

Discussion on sufficiency, reliability, and relevance principles for audit evidence as per ISA 500.

You're reporting an error for "AA – May 2017 – L2 – SA – Q2 – Audit Evidence"

AA – May 2018 – L2 – Q2 – Audit Evidence

This question addresses the auditor’s determination of sufficient and reliable audit evidence as required by ISA 500.

You're reporting an error for "AA – May 2018 – L2 – Q2 – Audit Evidence"

AA – Nov 2021 – L2 – Q2 – Audit Evidence

Discuss characteristics of good audit evidence and testing procedures for gathering it.

You're reporting an error for "AA – Nov 2021 – L2 – Q2 – Audit Evidence"

AA – Nov 2018 – L2 – Q6 – Audit Evidence

Explains the factors auditors consider for sufficient evidence, reliability principles, and steps to take when audit evidence is insufficient.

You're reporting an error for "AA – Nov 2018 – L2 – Q6 – Audit Evidence"

AA – Dec 2022 – L2 – Q3a – Audit and Assurance Evidence

Outlines five general principles from ISA 500 for assessing the reliability of audit evidence provided by a client

You're reporting an error for "AA – Dec 2022 – L2 – Q3a – Audit and Assurance Evidence"

AA – May 2020 – L2 – Q3a – Audit and Assurance Evidence

Explain the main assertions about account balances and give examples from the audit of trade receivables.

You're reporting an error for "AA – May 2020 – L2 – Q3a – Audit and Assurance Evidence"

AA – Aug 2022 – L2 – Q5b – Audit and Assurance Evidence

States factors that influence the reliability of audit evidence.

You're reporting an error for "AA – Aug 2022 – L2 – Q5b – Audit and Assurance Evidence"

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