# D I : e m a N
1. Helen Au assessed control risk to be low. What is the appropriate audit strategy she should
a) predominantly substantive audit approach
b) control testing strategy
c) combined audit strategy
d) substantive year end testing
2. Cole Catena was testing the controls of Blue Coast Wholesale Fish Market. When testing
controls, which one of the following evidence gathering procedures is used?
a) vouching of transactions
b) confirmations of accounts receivable
c) enquiry of client personnel
d) tracing of transactions to source documents
3. Landon Fung has decided to perform substantive procedures at a major retailer. Which one
of the following is not a substantive procedure?
a) inspecting documents to verify the dates of the transactions
b) bank confirmations regarding interest rates on borrowings by client
c) re-performing control procedures to test their effectiveness
d) recalculating an interest expense using confirmed interest rates
4. Jordon Chen wanted to ensure that all the transactions at his client were recorded. For
which assertion was he conducting these detailed substantive procedures?
d) none of the above
5. Victor Chio, who was representing his CPA firm at a conference, made the following
statement about assertions: When our auditors conduct substantive procedures, we search
for evidence that recorded accounts exist and that all accounts that should have been