Appendix C: 2013 Released AICPA Questions for Auditing and Attestation

1. Which of the following types of audit evidence provides the least assurance of reliability?

a. Receivable confirmations received from the client’s customers.

b. Prenumbered receiving reports completed by the client’s employees.

c. Prior months’ bank statements obtained from the client.

d. Municipal property tax bills prepared in the client’s name.

1. (b) The requirement is to identify the type of audit evidence that provides the least assurance of reliability. Answer (b) is correct because audit evidence obtained from nonindependent employees of the client is ordinarily considered to provide a lower level of evidence, as compared to the other replies. Answer (a) is incorrect because audit evidence obtained from knowledgeable independent sources outside the client’s company is ordinarily considered more reliable than evidence obtained from nonindependent sources (e.g., client employees). Answer (c) is incorrect because bank statements are prepared externally, and such externally generated documents are ordinarily considered more reliable than internally generated documents or inquiries of nonindependent sources. Answer (d) is incorrect because a property tax bill is prepared externally and considered more reliable than internally created documents or inquiries of nonindependent sources.

2. An auditor is considering whether the omission of the confirmation of investments impairs the auditor’s ability to support ...

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