An Auditor Should Recognise That the Application of Auditing Procedures

question 31

Multiple Choice

An auditor should recognise that the application of auditing procedures may produce evidential matter indicating the possibility of errors or fraud and therefore should:

• A) plan and perform the engagement with an attitude of professional scepticism.
• B) extend the work to audit most recorded transactions and records of an entity.
• C) design audit tests to detect unrecorded transactions.
• D) not depend on internal accounting control features that are designed to prevent or detect errors or irregularities.

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Definitions:

Businesses

Organizations engaged in commercial, industrial, or professional activities, aiming to earn a profit by providing goods or services.

Consumers

Individuals or groups who purchase goods and services for personal use.

Recorded

Captured in a form that can be saved and played back, such as audio, video, or digital file.

Experienced

Having knowledge or skill in a particular area or field obtained through involvement in or exposure to it over a period.