Audit Evidence: Class Questions - Review 3: In this video, 4.13 – Audit Evidence – Review 3, Roger Philipp, CPA, CGMA, presents another review of Audit Evidence by going over some CPA Exam-style questions. The first question asks, what is the purpose during an audit of sending out standard bank confirmations to financial institutions with which the client has done business during the year? Remember that standard bank confirmations can provide an auditor with information on account balances, any direct liabilities, and any required compensating balances. Approaching the answer choices armed with this knowledge allows for easily finding the correct answer. The next question asks what would an auditor most likely do if no replies were received to positive requests for confirmation of year-end accounts receivable balances. Again, Roger discusses the nature and purpose of positive confirmation requests before reviewing the answer choices for the best fit. The third question concerns negative confirmation requests in an audit while the last question deals with management assertions regarding slow-moving inventory.
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