To test the operating effectiveness of a control, an audit team might use a combination of each of the following tests except
a. confirmation of balances
b. inspection of documentation
c. inquiry of client personnel
d. observation of company operations
Answer: a. confirmation of balances
Effectiveness of audit procedures would be reduced by
a. performing procedures during the interim period as opposed to at the fiscal year-end date
b. performing audit procedures at the fiscal year-end date as opposed to the interim period
c. deciding to obtain external evidence instead of internal evidence
d. selecting larger sample sizes for audit
Answer: a. performing procedures during the interim period as opposed to at the fiscal year-end date
An audit committee is
a. a committee composed of persons not associating in any way with the client or the board of directors
b. composed of internal auditors
c. composed of members of a company's board of directors who are not involved in the day-to-day operations of the company
d. composed of members of the audit team
Answer: c. composed of members of a company's board of directors who are not involved in the day-to-day operations of the company
