Auditing

Audit procedures

Audit evidence

Compliance audit

Technical analysis

Cash in always material as materiality is qualitative concept

No audit of cash is needed when, in auditor’s opinion, cash is immaterial. Materiality is a relative concept

The cash balance need only be audited if the balance is in overdraft

Cash is to be verified if control risk is assessed as high

To be reliable, evidence should conclusive rather than persuasive

Effective internal control system provides reliable audit evidence

Evidence obtained from outside sources routed through the client

All are correct.

Auditing uses the theory of evidence to verify the financial information made available by accountancy

Auditing lends credibility dimension and quality dimension to the financial statements prepared by the accountant

Auditor should have through knowledge of accounting concepts and convention to enable him to express an opinion on financial statements

All of the above