Reliability – Knowsia

AA – L2 – SA – Q3.7 – Evidence Reliability

Most reliable type of audit evidence.

Question

Which one of the following types of evidence is the most reliable?
A The client’s sales invoices
B Report obtained from a client’s bank confirming balances
C The written representation letter
D Confirmation during a telephone call with the Managing Director that there are no loans outstanding

Answer

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Tags: Audit Evidence, Bank Confirmation, ICAG, Reliability
Level: Level 2

Topic: Audit and Assurance Evidence

AA – L2 – SA – Q2.6 – Audit Evidence Reliability

Most reliable source of audit evidence.

Question

Which of the following is normally the most reliable source of audit evidence?

A Internal audit

B Suppliers’ statements

C Board minutes

D Analytical review

Answer

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Tags: Analytical Review, Audit Evidence, Board Minutes, ICAG, Reliability
Level: Level 2

Topic: Audit and Assurance Evidence

AAA – L3 – Q61 – Audit Evidence

Discuss reliability of directors' written representations and actions if directors refuse to sign, focusing on revenue and expenditure.

Question

You are the external auditor of Jonas Healthcare Services Co.
A written representation letter has been prepared in which the directors have been asked to confirm that all revenue has been included in the financial statements and that when there is weak evidence of expenditure, the expenditure has been for the benefit of the company and not for the personal benefit of any employee or director.
Required
(a) Discuss the reliability of audit evidence provided by directors in the written representation letter and whether you should rely wholly on the representations of the directors or whether you should obtain other evidence.

(b) Describe the action you would take and the conclusions you would reach if the directors refused to sign a written representation letter. Your answer should specifically consider the statements in the letter concerning completeness of revenue and validity of expenditure.

Answer

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Tags: Audit Evidence, Audit Procedures, Directors' Representations, Reliability, Written Representations
Level: Level 3

Topic: Audit Evidence

Tag (SQ): Reliability

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AA – L2 – SA – Q3.7 – Evidence Reliability

Most reliable type of audit evidence.

AA – L2 – SA – Q2.6 – Audit Evidence Reliability

Most reliable source of audit evidence.

AAA – L3 – Q61 – Audit Evidence

Discuss reliability of directors' written representations and actions if directors refuse to sign, focusing on revenue and expenditure.

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Tag (SQ): Reliability

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AA – L2 – SA – Q3.7 – Evidence Reliability

Most reliable type of audit evidence.

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AA – L2 – SA – Q2.6 – Audit Evidence Reliability

Most reliable source of audit evidence.

You're reporting an error for "AA – L2 – SA – Q2.6 – Audit Evidence Reliability"

AAA – L3 – Q61 – Audit Evidence

Discuss reliability of directors' written representations and actions if directors refuse to sign, focusing on revenue and expenditure.

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