AUDITQUESTIONS

1. History and development of auditing

The industrial revolution in two stages 1760-1840 and 1870-1914 during these periods gave rise to
large commercial economic transactions and consequently the need to be
audited. The audit originates as a social need generated by development
economic product of globalization. In 1900, it was introduced in the United States the
audit and it was given another approach which is to see the current financial condition of a company and the
fraud or error detection took a back seat.

2. Historically, what was the primary objective of the audit and what is it now?
current affairs?
it was fraud detection and prevention (Voluntary). and the detection and prevention of errors
(Involuntary).

to see the current financial condition of a company, if the financial statements are available
reasonably exposed according to the GAAP, and the detection of fraud or error shifted to
background.

What is financial auditing?

It is the examination conducted by a professional Certified Public Accountant (auditor), to the
accounting records and financial statements of a company, with the purpose of issuing
an opinion on the reasonableness of the Financial Statements of a certain
date or of a period and evaluate the functioning of the Internal Control System.
(Reasonableness = high degree of security, but not absolute)
4. What is the purpose of the financial audit?
It is to establish whether the accounting records and financial statements have been
carried out in accordance with accounting standards and provisions
legal in order to issue an opinion on the reasonableness of the
information.
5. What are the objectives of financial auditing?
Support senior management with their reports and recommendations.
Evaluate the internal control and make suggestions to improve it.
Traditionally, it is about uncovering fraud and errors and advising.
corrective action measures
Determine the degree of compliance with policies, plans
established in an entity.
6. What is the auditor's responsibility regarding the financial audit?
ISA No. 240 addresses the responsibility of an auditor in an
financial statement audit, which informs us that the auditor
is responsible for obtaining reasonable assurance that if the
financial statements are free of material errors, whether due to fraud
an error, in order to issue an opinion = ruling.
 7. What is the responsibility of senior management regarding the audit?
financial?
It is to prepare the accounting records in accordance with the regulations and legal provisions.
and accounting and administrative policies.

Prepare the Financial Statements.

Establish internal control systems for the safeguarding of assets or property
from the company.

8. Aren't audits uniform?

It depends on several factors in an entity:
Nature, size, and volume of operations.
Efficiency of internal control.
Changes in the company's own activities.
Staff efficiency.

9. How is the scope of the audit determined?

The scope of the audit is determined based on 2 parameters:
1.- The one established by Law and its requirements
corresponding in which they indicate the reports that must be set
to present and even on certain established dates. By
example:

The (ASFI) Financial System Supervisory Authority is the

institution responsible for regulating and supervising the functioning of the
Banking Entities, Cooperatives, Mutuals, Financial Funds, indicates
that not only an audit report of its should be presented
financial statements, but also an analysis, evaluation, and review of the
Entity wallet, a report on the information systems that
use the Bank.

According to R.N.D. 001/2002 of January 9, 2002, the SIN or Service of

National Taxes indicates that there should not only be a report of
financial audit, but also a statement
(RND opinion 101804 of 02-03-2018) on tax aspects of the
Society. (Tax annexes)

2.- According to client requirements, it may be that they do not only want
a financial report of your financial statements, but possibly ask
any additional service or extra work on a specific topic by
example:
A technical revaluation of fixed assets.
Inventories at 100% in all their warehouses including at the branch level nationally if that is the case.
it could be the case.
All of this mentioned in points 1 and 2 should be properly indicated.
in the Commitment Letter or Employment Contract signed between the executives of the Company
Audited and the Partner of the Consulting Firm.

The audit must be organized to adequately cover all aspects stipulated in

the Letter of Commitment.
10. What are the most relevant types of audits?
Financial audit

Operational audit
Special audit

Compliance audit
Tax audit
Environmental audit
Information system audit

Forensic audit
Government audit
11. What is financial auditing?
It is the professional exam conducted by the Certified Public Accountant.
(auditor), to the accounting records and financial statements of a
company, with the purpose of issuing an opinion on the reasonableness
from the Financial Statements as of a certain date or for a period and
evaluate the functioning of the Internal Control System. And an opinion is issued
opinion. (Reasonableness = high degree of security, but not absolute)
12. What is operational auditing?
e integral of the
It is the critical, systematic, impartial exam.
management and operations of a company, to determine the
efficiency that achieves the pre-established objectives, and efficiency and
economy with which resources are used, a to suggest
recommendations that will improve management in the future, and a report is issued
does not rule.
13. What is the special audit?
The Special Audit is the examination conducted in an entity, area or
activity in where irregularities or wrongdoings are presumed to exist
management of resources. Generally, this type of audit implies the
specific examination and verification of a certain account or accounts (not
dictate)
14. What is compliance auditing?
 The Compliance Audit is the verification or examination of the
financial, administrative, economic, and contractual operations
from an entity to establish that they have been carried out in accordance with the
legal, technical, regulatory, statutory standards and compliance
of internal control.
15. What is tax-fiscal auditing?
The Tax Audit is the fiscal examination carried out by an auditor.
independent auditor to determine the veracity of the results
of operations and financial situation declared by the company
(taxpayer), through their financial information or other means.
Tax annex
16. What is environmental auditing?
The environmental audit consists of a thorough review of the
installation, processes, storage, transportation, safety and risk
among other aspects that allow the definition of action plans through
which are established, with set deadlines, the works,
repairs, corrections, acquisitions, and actions that may be
or not regulated, but whose purpose is the protection of the environment
environment.
17. What is an IT system audit
it is the review and evaluation of controls, systems, procedures
of informatics, hardware and software, its use, efficiency and
security, of the organization that participate in the processing of the
information.
The audit in IT is of vital importance for the good performance of the
information systems, as it provides the necessary controls for
systems should be reliable and have a good level of security, a system consists of
input, process, output, and feedback. (Risks-economic fraud, hackers,
crackers, impersonation, etc.) (COBIT standards are applied in English
18. What is forensic auditing?
Effective research techniques are being developed to apply the law and achieve justice.
in the face of the impunity generated by corruption, additionally forensic auditing can be
used in the private and public sectors in disputes that lead to legal action, is
therefore its application expands to quantify financial losses, arbitration, lawsuits
insurance, marital disputes, inheritances, criminal investigation (financial fraud, money laundering
quantification of financial losses

19. What is government auditing?

The Government Audit is carried out by the Auditors
Governmental (Internal Auditors in each entity or Comptroller)
State General) in the different public entities, whether these are
from the central government, departmental government y Municipal in
compliance with its established legal powers.
 20. What is internal audit?

It is the specialized unit made up of professional auditors.

dependent on the entity, responsible for conducting subsequent examinations, of the
operations already executed by the company or entity, whether they are financial
and/or administrative staff, as a service to management; being the personnel of
internal audit unrelated to such operations.
21. What is external audit?
it is the work carried out by a professional Auditor or independent Consultant who are not
employees of the Company are completely independent from the organization, for this reason
those interested or owners of the companies require a fully qualified professional
Independent removed from the interest of the Organization. (Temporary hiring)

22. What are the differences between internal and external audit?
The work done by an internal audit is identical to the
conducted by external audit. The techniques, evaluation of control
internal, the risks etc.
So what is the difference
Difference factor Internal Audit External audit
Objective Need for the administration of credit institutions
Professional Internal staff External staff
Dependency Independence Bay Absolute independence
Hiring Employment contract Service provision contract
Report destination: To the administration Adm. or third parties
Permanent Periodicity Eventually

23. What is Audit Risk

The audit risk is the possibility of issuing a clean opinion (without
caveat) on the financial records and statements substantially
distorted and/or vice versa, these risks are the result of the conjunction
from the following risks: Inherent risk, Control risk and Risk of
detection.
24. What is Inherent Risk?
It is the inherent risk of each company according to its activity or type.
of operations they carry out, the nature of their products/services
or the volume of their transactions is completely out of control due to
auditor's report.
Type of business main inherent risks
Transport Collision, Crashes, Rollover
Construction Falls, Blows, Entrapment
Accounting Misappropriation accounting, do not apply
well the PCGA.
Bank teller Counterfeit bills, excess, poor record
of quantities
 25. What is Control Risk.
It is the risk that control systems will be unable to
detect or avoid significant errors or irregularities in form
opportune. It is that internal controls are deficient or do not exist.
Effective internal controls reduce the risk of control.
Company A = has a foreman

B Construction Company =notene foreman

26. What is Detection Risk.

It is the risk that the audit procedures do not reach
discover significant errors or irregularities, in case of
they will exist.
The factors that determine the risk of detection are related.
with:
Not examining the entire sample or available evidence.
The ineffectiveness of an auditing procedure applied incorrectly
The inappropriate application of auditing procedures,
including the risk of erroneous assumptions and conclusions
wrong.
The inherent and control risks are beyond the auditor's control, but
not so the detection risk because it is inherent to the auditor
 27. What is internal control
Internal control is an organized set of legally established standards and procedures.
pre-established measures that serve to safeguard or protect assets or heritage in a
entdad.
28. How is internal control divided?

Internal control is divided into prior internal control and post internal control.

The prior internal control is that which is executed by employees or workers who
they participate in operations before their actions cause effect or harm when the
Administrative operations have not been completed. The subsequent internal control is
carried out by the Internal Audit Unit, when the operations have already been
executed or at the end of a period. Senior management performs both controls.
29. What is an audit finding?
The audit finding refers to the fact discovered by the auditor in an audit and
this finding must meet the following attributes which are summarized as:
condition, the criterion, the cause, the effect and the recommendation.

30. Describe the attributes of an audit finding

The condition. - What is the fact? What was found? What is it that was perceived?

It is what the auditor found in practice, that is, a narration of the discovered fact.

Criterion - What should it have been? How should it have been done?

It is the norm, regulation, provision, or instruction that should have been complied with or what was expected to be followed.
would comply.

The cause.- Why did it happen? What is the reason or reasons?

It must be supported by the opinion of the audited area. These are the potential reasons for deviating from the criterion or
not having the desired control mechanism.

The effect. - What is the impact? What significance does it have?

It is the quantification of the finding or the establishment of the effect that the finding has on the entity. It is the risk.
that is run for deviating from the criterion.

The recommendation.- What solution is proposed?

It is the auditor's suggestion to senior management to avoid the consequences mentioned in the cause, in order to
strengthen the internal control that has been compromised.
31. What are the NAGAS
The set of guidelines and requirements related to the person of the public accountant, their
work and its ruling.
Another definition of NAGAS is: the fundamental principles of auditing that must be
to frame their performance the auditors during the audit process.
32. How are the NAGAS classified?
Personal norms.
Rules related to the execution of work.
Standards related to the information provided.

33. What are Personal Standards according to the NAGAS

PERSONAL: refers to the person of the public accountant as an auditor
independent; this must be: expert in the subject, being a professional in his
acting and always observing ethical principles.
34. What are the Standards related to the execution of work according to NAGAS

The references to the public accountant as an independent auditor must be: expert in
the subject, being professional in their performance and always observing ethical principles
35. What are the Standards regarding the information submitted according to the NAGAS
Those relating to the execution of the work, which must be carried out technically.
planned, with constant supervision evaluating the control systems
internal, taking sufficient and valid evidence through analysis of the
financial information.

36. What is an audit report

It is the written report through which an independent auditor, based on the examination
of the same and practiced in accordance with Generally Accepted Auditing Standards
Accepted, express your opinion or state that you agree with these statements.
standards.
37. What are the types of opinions in auditing?
a. Unqualified opinion or clean opinion - States that the financial statements
they reasonably present, in all significant aspects, the situation
financial and equity and the results of the entity's operations.
b. Opinion with reservations.- States that, except for the effects of the matter
to those referred to by the exception, the financial statements present
reasonably, in every significant aspect, the financial situation and
patrimonial and the results of the entity's operations.
c. Adverse opinion.- Declare that the financial statements do not present
reasonably, in every significant respect, the financial situation and
heritage and the results of the operations of the entity.
d) Disclaimer of opinion.- States that the auditor does not express an opinion on the
financial statements
38. How many paragraphs make up a basic opinion?
 1.- Opinion Paragraph
This paragraph expresses the Auditor's opinion and implicitly acknowledges that the
Auditing provides a reasonable degree of assurance that the Financial Statements are
exempt from erroneous or false representations of a significant nature.

2.- Paragraph justifying the opinion

This paragraph indicates that the audit was carried out in accordance with Audit Standards.
Generally Accepted (NAGA), describing the nature of the Auditor's work.

3.- Paragraph on the Responsibilities of Management in Relation to

the Financial Statements
Establish the difference between management's responsibility regarding preparation.
of the Financial Statements

4.- Paragraph on the Auditor's Responsibility regarding the Financial Statements

Financial
Emphasizes the responsibility of the Auditor related to issuing an opinion.
based on her audit work.
In case the Uniformity in the application of the Principles has not been maintained.
Generally Accepted Accounting Principles (GAAP) must be explicitly indicated.
such a situation in another paragraph (exception).

39. What is the Emphasis Paragraph.

the auditor highlights those facts that he considers relevant or of
special importance, although such facts do not affect opinion; Never
A paragraph of emphasis should not be confused with one of exception.

The emphasis paragraphs highlight, then, in the report, facts or circumstances that
they are important for the reader of the financial statements and it is advisable to convey them to their
attention, although such facts and circumstances do not alter the meaning of the expression
professional manifested in the report.
40. What is confidentiality in auditing?
The auditor must respect the confidentiality of the information obtained during the course of
his work and must not disclose the information to third parties without authorization
specifies, unless there is a legal or professional obligation to do so.
41. What is the auditor's responsibility for work done by other professionals?

(NIA 600 and 620).

When the auditor delegates work to their assistants or uses work done by other auditors
or experts, he continues to be responsible for training himself and expressing an opinion regarding
financial information.
 The auditor must direct, supervise, and carefully review the work delegated to their
assistants. Must obtain reasonable assurance that the work performed by others
auditors or experts is suitable for your purposes.
42. Who is responsible for the accounting system and internal control?
Top management is responsible for maintaining an adequate accounting system, which
I incorporate various internal controls with an appropriate scope to the size and nature of
the activity of the company.
43. What is a public accountant?
He is a professional with a degree in Public Accounting, who holds an academic title and national provision.
entitled at a university and registered with the respective Professional College, which has expertise
theoretical practical aspects of accounting, regulations, management, and planning of resources
economic aspects of the company
44. How many N.I.A.S. have been adopted by the College of Auditors and Accountants?
How many are the (N.I.A.S.) and into how many groups are they detailed (There are 36 + 1 national =
37) (six groups plus 1 NICC and 1 national)

The NIAs are the set of guidelines or directives aimed at standardizing the
professional practice of accountants and auditors for the review of the Statements
Financial statements prepared in accordance with International Financial Reporting Standards
IFRS Finance.
45. What does the Code of Ethics for accounting professionals establish?
Establish ethical and moral principles or guidelines for the accounting professional and
Auditor.
46. What are the fundamental principles established by the Code of Ethics and how many are there?
accounting professional
It's 8:00.
Integrity
Objectivity
3. Independence
4. Competence and personal care
5. Confidentiality or professional secrecy
6. Compliance with regulatory provisions
7. Diffusion and collaboration
8. Professional Behavior

47. What is a consulting firm in auditing and accounting?

A consulting firm is a legally established institution in the country that provides services of all kinds.
always framed within activities related to the accounting, legal, administrative profession, etc.
A consulting firm is made up of a group of professionals related to the Legal and Tax aspects.
accounting, audits and specific services which provide their services in order to comply with the
client needs and meet their expectations related to the assigned work.
48. How is a consulting firm structured?
The hierarchical levels established in the organizational structure of the department of
the audit is as follows:
Main Partner
Socio Regional
Audit Managers
 Supervisor
Senior
Junior
Audit assistants
49. What are the requirements for a company to present an audit report and connection
taxes to S.I.N?
1.-They must be GRACO or PRICO. (Present EE-FF, Audit Report, ITC=Tax Information)
Supplementary, Composed of 15 annexes and Applied Procedures.

2.- Those who belong to the regional or the NON GRACOS or the Rest of the Taxpayers who have
gross income less than 1,200,000.- Bs.- Do not submit anything (Only financial statements). On the contrary if
they have gross income greater than or equal to 1,200,000.- Bs.- present (EE-FF, Audit Report and
Tax pronouncement.
50. What is public bidding?
This means that a certain public entity presents on the SICOES website
State Hiring System so that any legally qualified Consulting firms
established in the country present their work proposals to access work
of audit, for this it is necessary to buy the document of
specifications or terms of reference that indicate the scope that is set for it
work.
51. What is direct invitation
This means that the company seeking audit services proceeds to invite or send
invitation letters to 4 or more consultants to proceed to present their proposals
of the audit informing about the scope or the review that needs to be carried out.
After all this, a stage is entered in which the client, through a commission in some cases or
the general shareholders' meeting or the board of directors in other cases proceed to select the auditor by evaluating
various aspects such as: the auditor's experience, their working methodology, their economic proposal, etc.
After this process, letters are sent to the participating consultants.
indicating whether they have been selected or not to carry out the corresponding work.
Once the consulting firm has been selected, the preliminary activities take place.
the collection of information for the planning process
52. What is Audit Approach
The audit approach constitutes the basic pattern or guide from which the...
general audit procedures to be used during the development of the tasks
commissioned.
53. What are the preliminary steps before planning and/or conducting an audit?
1.-First, the request for a proposal presentation is received from the client for the
conducting an audit.
2.- Subsequently, the client is visited to see or confirm:
a) the volume of the operations to be audited through the accounting documents.
b) the quantity of accounting receipts.
c) the amount of assets according to the database
d) the number of workers according to the payroll sheets
the quantity of merchandise or inventory
the number of clients
 3.- The economic proposal is presented next.
54. What are the stages or phases of the audit?

The stages for the execution of an audit are three:

Planning (Time + 20%)
Execution (tempo - 70%);
Report (time + 10%)
55. What are the phases of planning?
1.- Planning occurs in two phases, Preliminary Planning and Planning.
Specify.

a) In the Preliminary Planning, preliminary activities or surveys are carried out

information (interviews or meetings and requests)

A letter is sent to senior management indicating that it should be made known to the managers of
areas and departments that are starting the audit, so that all personnel
please provide collaboration and the necessary documentation for the audit.
The Commitment Letter is prepared to be signed by the head of Audit and Senior Management.
Management.
Set up interviews with general management, area managers, and department heads.
Visit the different facilities or units.
The questionnaires are carried out for the different units or departments in order to make
an assessment of internal control.
Analysis of the Accounting unit and its internal control
Description of the Business Cycles.
Treasury Cycle.
Revenue Cycle.
Spending Cycle.
Inventory Cycle.
Fixed Asset Cycle.
Human Resources Cycle.
Others more.
The following documentation is requested:
Previous audit reports
The testimony of constitution.
The accounting vouchers which will be received under inventory equal to
finalize.
The financial statements duly notarized.
The organizational chart of the company.

The internal regulation.

Specific regulations
The procedural manuals.
The function manuals.
A backup of the accounting system.
Photocopy of the company's NIT.
Minutes of the Board Meeting.
Environment to conduct our fieldwork.
Other documentation and information, not limited
In the specific planning, it is done in offices where the analyses are made.
of risks, the MPA, the audit programs and procedures.
The MPA Audit Programming Memorandum.
Evaluation of internal control with questionnaires from each area or department
SWOT analysis (Strengths, Weaknesses, Opportunities, Threats)
Risk analysis
Establish the number of auditors
Establish the time to consume
The Audit Programs with their procedures See in……ANNEX…………
2.- Execution Stage.- It is a stage in which we proceed to seek audit evidence.
through the application of the audit procedures designed in the stage of
planning for all items of the financial statement, that is: Available, Receivable,
Realizable
etc.
It is the phase of the process where the action plan previously prepared by the
auditor, where substantive and compliance audit tests are conducted.
3.- Conclusion Stage.- It is the stage in which the audit opinion is issued according to
to the evidence obtained in the execution stage, our opinion may be directed to a
dictamen en limpio
negative.
Secondarily, the internal control letter or report is issued with the findings.
corresponding
 56. What is the most important stage in auditing, why?
It is the planning stage as it depends on this stage for the success of the audit and
this stage must be carried out by the auditors with the most experience
57. What is the commitment letter and what does it prevent?
It is through which the auditor and the client agree on the terms of
work. The agreed terms would need to be registered in a
audit engagement letter or other appropriate form of contract.

It is in the interests of both the client and the auditor that the auditor
send a letter of commitment, preferably before the start of the work,
to help avoid misunderstandings regarding work. The letter
compromise the following particularities:
Document and confirm the acceptance of the appointment by the auditor.
The objective and scope of the audit.
The degree of the auditor's responsibilities towards the client.
The fees for the audit work.
Number of copies of the report to be delivered.
-The ownership of the working papers.
The acceptance of all the conditions described in the letter by
part of the Partner of the consultancy and the Manager of the Company.

58. What is the Audit Planning Memorandum MPA

The audit planning memorandum is a document that
summary and is used to communicate the key aspects of our plan of
audit.
It is a document that summarizes the most important aspects of everything.
the planning process, which is very useful for the Partner and Manager
in charge of the audit, the content of this document generally
have the following data:
Company structure, objectives, etc.
Customer key, directors, etc.
The materiality that will be used during the course of the audit.
The reliability of business cycles.
The classification of the systems used by the Society.
Summary of risk areas.
-Etc.
59. What is an audit program?
It is a set of procedures carried out with the purpose of
obtain evidence. They are detailed guides on the procedures and
tests to be carried out.

It is a detailed outline of the work to be done and the procedures to be used,

these must be properly referenced to the working papers where it has been
the procedure applied and signed by the person who executed it.
As each industry has its reason for being, there are therefore audit programs.
para cada rubro del Balance General y Estado de Resultado por ejemplo: (Actvo
Available
Expenses).
 60. How many parts does an audit program consist of?
1.-Name of the category,

2.- Objective of the audit.

3.- Audit procedures.
4.- Conclusion
61. What is a procedure in auditing?
The Audit Procedures are the set of techniques for
research applicable to a game or a group of facts or
circumstances related to the financial statements, or operations that
carry out the company.

An audit procedure is the detailed instruction for the collection of a

audit evidence to be obtained at a certain time during the
audit.
62. What is Evidence in auditing?
It is the evidence that allows verifying the occurrence of the fact.
identified as an audit finding, the evidence is obtained
product of the collection of information and documentation.
63. What types of evidence are known in auditing?
In auditing, the following types of evidence are considered:

Physics: It has to do with the presence or existence of something, and can refer to
people, objects, or facts. (Sample of materials, maps, photos)
Documentary: It is the most widespread and important form of evidence and consists of
precisely in documents (checks, invoices, contracts, accounting records).
Testimonial: It is the information provided by individuals in oral or written form that
they are related to it
Analytics: It is built by the auditor and results from the use of
combination of the other types of evidence (comparative data,
calculations etc).

64. What are auditing techniques?

The audit techniques are the practical methods of investigation and
test that the auditor uses to obtain the necessary evidence that
support your opinion and conclusion. Their use is based on their
criterion or professional judgment, according to the circumstances.

65. Describe three audit techniques

General Study:
It is the understanding of the general and specific characteristics of the
Entity, of the programs and activities that will be audited together or
separately, to clarify the audit objectives.
2. Observation: It consists of visually verifying certain aspects.
facts or circumstances, to recognize the way in which the
The servers of a company apply the established procedures.
This technique is generally applied in all phases of the audit.
Examples:
Observe the inventory take.
Observe payment of payrolls
Observe the production process.

3.Comparison: It is the study of cases or facts, to discover

equality or differences when examining, in order to appreciate similarities.
Example:
We compare the expenses or sales monthly to
find out in which months there have been significant variations and discover
why do these variations occur, why did sales drop or
expenses have increased.
66. What are Compliance Tests?
They are the tests designed by the auditor in order to obtain evidence.
to verify the existence of internal control in the audited company, in order to
to have reasonable assurance that the established internal controls are being
applied correctly and if they are meeting their objective

67. What are substantive tests?

They are the tests designed by the auditor as the object of

obtain evidence related to financial and operational information
audited.
68. What is the difference between Compliance Testing vs. Testing
substantive

Compliance testing involves collecting evidence for the purpose of

test the compliance of an organization with control procedures. This
differs from the substantive test, in which evidence is collected to evaluate the
integrity of individual transactions, data or other information.
69. What is Circularization in auditing? and external confirmation?
The circularization consists of documents that are sent.
directly by the legal representative of the audited company, in
those that are requested that some of the clients, or banks, or
suppliers, etc., with which the company has links
commercials, collaborate by sending directly to the
auditors confirm the information related in the document
request to achieve a confrontation in that way
information that facilitates verifying the validity of the financial figures
that are being audited.
70. What is Universe or Population in auditing
Universe means the total set of data from which a selection is made.
a sample on which the auditor wishes to draw conclusions.
For example, all the entries in the balance of an account or a class
Transactions constitute a universe.
71. What is a Sample in auditing?
 Sampling in the audit (sampling) involves the application of procedures of
audit of less than 100% of the items that make up the balance of an account or class
of transactions in such a way that all sampling units have equal
selection opportunity.

72. What is Representative Sampling in auditing?

The decision to use sampling in auditing is a
the issue of the auditor's professional judgment and it will depend on it
sampling method that must be applied.
The auditor may decide to apply sampling in the audit of the account balance or
Transaction class. Sampling in the audit can be applied
using either statistical or non-statistical sampling methods.
73. What are Strata in auditing?
"Stratification" is the process of dividing a universe into sub-universes.
each of which is a group of sampling units that
they often have similar characteristics, monetary value.
74. What is materiality in auditing or relative importance
Materiality is the maximum monetary error that can exist in the balance of an account without
to allow financial statements to be substantially distorted. To materiality
it is also known as Relative Importance
75. What is Tolerable Error (TE)?
"Tolerable error" means the maximum error in a universe that the auditor
is willing to accept.

When designing audit procedures, the auditor must determine the

appropriate means of selecting parts for testing. The means
available to the auditor are:
(a) Select all the parties (100% exam);
(b) Select specific games,
Sampling in the audit.

76. What is an internal control questionnaire?

The internal control questionnaire is a document that an auditor gives to them.
provides company employees before carrying out a
audit. The questionnaire is useful to determine in which areas the
audit must focus.
It is the starting point for carrying out the audit procedures, where the
auditor obtains a guide when conducting substantive tests and
compliance.
77. What are the purposes of working papers in auditing?
They serve the auditor as a basis for the preparation of the final report, it is the
backup of all work carried out during the execution of the
Audit.
When preparing the working papers, the auditor must avoid accumulating excess of
documentation, (Quality Vs Quantity)
The working papers are the property of the auditor.
78. What are the characteristics of working papers?
The working papers must contain relevant information and gather
the characteristics of being:

Clear: The working papers must allow a third party

may understand the purpose, nature, scope and
conclusions of the work done.
Concise: The working papers must be brief and to the point without
include excessive comments that hinder understanding and
review.
Objectives: The working papers must be issued with the criterion of
impartiality means reflecting facts or situations as they have been
happened and refrain from comments or criticism or assumptions.
Relevant: The working papers should include only the information and
data related to the objectives of the audit in such a way that
constitute in support of the auditor's conclusions.
Organized: The working papers must be organized and filed.
maintaining a logical rational order in such a way that allows
verify the audit process and access to any information.
Completes: The working papers must contain all the information in a form
sufficient to help understand the work done and the reasons that support it
the conclusions reached

79. What are the permanent working paper files?

This constitutes the information base for planning the
examination and will be used in successive years, and are subject to
update. Part of the information filed in this file.
is related to strictly confidential information,
therefore the content of certain documents should not be
treated with no employee of the entity other than
especially designated
80. What are the current working paper files?
It is documentation that is being collected or prepared during the execution of the Audit.
and they come to support the work done,
81. What is professional secrecy?
The Public Accountant must keep secret the administrative operational issues and/or
financial information of the entity, should not be disclosed to any person who does not have authorization
By knowing such data, the authorization is held by those designated by the same entity and the
relevant authorities
82. What is an Audit Certificate?

It is the document or paper that describes the work done by the

auditor on an account, item, area, or operation subject to its
examination, as well as the results and conclusions on which it is based
the auditor's opinion.
83. What are summary certificates?
In the summary documents, the item, amount, or figures are summarized.
procedures and conclusions subject to examination, that allows the
 analysis more efficiently. For each summary, there must exist a
item in the Work Sheet.
84. What is an analytical certificate?
It contains the development of one or more procedures on a concept, figure,
balance,movementoroperationofthereviewedarea,containedintheschedules
summaries
85. What are sub-analytical certificates?
Through the sub-analytical forms, disaggregation is carried out.
detailed or in-depth analysis of the data contained in a record
analytical
86. What are References in auditing

It is an alphanumeric index (letters and numbers) that always appears in red and
place in the upper right corner.
The objective of referencing is to organize and facilitate the identification and the
access to the working papers for the purpose of:
Supervision
Review
-Consultation
Demonstration of the work done.
87. What is Co-reference?
They are the cross-references used to indicate that a figure or data
within a job paper have a direct relationship with equal or equals
figures or data that appear in other working papers.
A cross-reference that comes from a figure must be placed on the left or
above the mentioned amount (comes from )

A co-reference that is carried from back to front should be placed in the

right or below the amount (goes to )
A figure or data cannot have more than two coreferences (from where it comes)
and where is it going)

88. What are Audit Marks

The brands also known as trademarks, are symbols that document
the P of T, giving them meaning and recording part of the
work done

However, the meaning of brands is variable and one must refer to

at the bottom of the P of T where it is explained in the form of a legend
what they represent.

89. What are the Components of internal control (COSO I and II report)?
The components of control are 5, the following:

Control Environment.
Risk Assessment.
 Control Activities.
Information and Communication.
Supervision or Monitoring.

90. What is the Management Letter or Letter of Representation.

The Management Letter is the document obtained by the Society of
Audit, through which the holder of the audited entity. The High
Management acknowledges having made available to the committee
audit all required information, as well as having obtained
manifestations or any significant event occurred during the
period of the exam conducted
91. What is the Lawyer's Letter?

It is the letter in which the company's lawyer or lawyers inform the

auditor on all legal aspects of the company that is
are in process and under the charge of the lawyer(s), indicating the
legal situation of each of the cases, including an estimate
of the expected outcome in each judgment or legal proceeding or the
statement that it is not possible to estimate the final result.

It includes labor, commercial, and criminal aspects in that letter.

civilians and any other that may exist in favor of or against the
company.

It is the letter that is given to the auditors and indicates all the lawsuits and knowledge of the auditor.