📏CPA EXAM PREP

Audit Evidence and Sampling

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Question

Why is inquiry alone never sufficient audit evidence?

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Answer

It must be corroborated.

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Question

How does classical variables sampling differ from MUS?

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Answer

It is better when many misstatements or understatements are expected.

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Question

Why must the auditor control the confirmation process?

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Answer

To preserve the reliability of the responses.

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Question

What makes audit data reliable when the auditor uses data analytics?

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Answer

Source, controls over preparation, completeness, and accuracy.

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