DENETİM

The evidence to be collected by the auditor is divided into two according to the source. These are evidence from the accounting records and supporting evidence. As is known, the accounting record environment within the enterprise refers to all the accounting information available in the enterprise. As an example of the audit evidence in the accounting recording environment; spreadsheet, journal, ledger, auxiliary ledger, accounting handbook, calculations, electronic funds transfer records, cost distributions and reconciliations can be shown. The accounting information available in the accounting record environment is the evidence available to the auditor. This information forms the basis of the financial statements of the client business and it is mandatory to audit these audit evidences. However, this evidence cannot be considered to be completely reliable. Therefore, the auditor has to investigate the reliability of this evidence. This research is done by collecting supporting evidence. While some of the supporting evidence is obtained from the client’s business, a large portion of it is obtained from those outside the business. The reliability of evidence from people outside the business is very high. The correct answer is A.

Analytical Evidence  is for auditors to compare the data of the audited company with the data of previous years or the data of similar enterprises in the sector and to investigate the relationships between them. The answer is C.

A form audit is a way of auditing to investigate the conformity of accounting held in an enterprise in terms of form. In the audit of the form, it is investigated whether the events that cause a value
movement in the enterprise are reflected in the accounting records based on documents and whether the accounting is kept in accordance with the formal conditions of the generally accepted accounting principles. The answer is E.

Main audit processes are comparison process, audit of the amount transfers, the arithmetic examination and the document review. The answer is C.

Document review is the auditor’s examination of internal or external records and documents, which form the basis of the subject being audited and are kept in paper, electronic or other media. Document review is the opposite of the technique of re-monitoring the recording system. The answer is B.

Analytical procedures are the research and review of meaningful relationships that are considered to exist between the data in the financial statements. The answer is D.

Logicality Analysis (Rationality Tests) is conducted to estimate other data as a variable by considering some data belonging to the business. The answer is C.

The assertions regarding the types of transactions and events in the period under audit are as
follows:

The answer is E.

Permanent file is the file in which the auditor puts the working papers to be used not only in the
relevant audit year, but also in the following years. In other words, these are the files where the working papers containing the information used in more than one period are kept. These types of files provide serious preliminary preparation and convenience in subsequent audits. The following documents can be given as examples of the main working papers to be in the permanent file:
• Information About Customer Business,
• Information About Industry of the Customer Enterprise,
• Enterprise’s Articles of Association,
• Organization Chart,
• Contracts,
• Deals,
• Attorney,
• Signature Example (Circus),
• Statistical Information,
• Account Plan,
• Accounting Handbook,
• Board of Directors Meeting Minutes an
• Annual Reports,
• Copies of Tax Declarations,
• Financial Statements for Previous Years,
• Audit Reports for Previous Years,
• Files of Information Provided to the Public Oversight Board.

The answer is C.

Sampling risk can occur in four different ways: alpha risk, beta risk, false rejection risk, and false
acceptance risk. Alpha risk, beta risk, false rejection risk and false acceptance risk can be briefly
defined as follows (Selimoğlu, 2012):
• Alpha Risk; although the internal control system in the business is reliable enough, the independent auditor concludes that the internal control system is not reliable by looking at the results obtained from the sample.
• Beta Risk; although the internal control system in the enterprise is not reliable enough, the
independent auditor concludes that the internal control system is reliable by looking at the results obtained from the sample.
• Wrong Rejection Risk; although the sample results selected by the auditor indicate that there is
a material error in the remaining accounts, there is a risk of no material errors in the remaining
accounts.
• Wrong Acceptance Risk; although the sample results chosen by the auditor indicate that there
is no material error in the remaining accounts, there is a risk of material errors in the remaining
accounts.

The answer is E.

The book says "Collecting evidence is the basis of the independent audit process. An independent auditor collects evidence to give reasonable assurance whether an entity’s financial statements are fairly fair in accordance with accounting standards".

In the book, audit evidence is defined using the statements in I, II, III. Audit evidence can be defined as any information, document and record used by the auditor to determine ... all information used by the auditor in reaching the conclusions based on his opinion is audit evidence. Audit evidence includes the information in the accounting records, which form the basis of the financial statements, and other information.

Spreadsheet, journal, ledger, auxiliary ledger, accounting handbook, calculations, electronic funds transfer records, cost distributions and reconciliations are given as the examples of audit evidence. Therefore, accountant's personal notes can not be considered among the examples.

Continuous audit is defined as  "the review of the records and documents related to all transactions within a time section. The auditor, who performs continuous audits, thoroughly examines all records and documents during the activity period". therefore the correct answer is B.

According to the book,  audit process performed to prevent the transfer of an amount from one place to another incorrectly or to transfer the correct amount to the wrong account is under the  Audit of amount transfer.

Recalculation is the evidence collection technique that provides mathematical evidence and is used in conjunction with other audit processes in the evaluation of financial information. Recalculation informs the auditor about the arithmetic accuracy of an amount. In addition to the arithmetic accuracy, supporting oral evidence is collected through the investigation technique.

Analytical procedures refers to the evaluation of financial information by analyzing meaningful relationships between financial and non-financial data.

Audit evidence obtained directly by the auditor is more reliable than audit evidence obtained indirectly or by inference.

• Audit evidence in physical or electronic form, or audit evidence in the form of documents in another environment, is more reliable than audit evidence obtained orally.

• Audit evidence obtained from the original of a document is more reliable than audit evidence obtained from photocopies and electronic documents.

The objectivity of the evidence is that all auditors reach the same conclusion about a transaction. Accordingly, if two different auditors reach the same opinions based on the same evidence, that evidence is objective. If the Auditing comments of different people acting from the same evidence differ from each other, that evidence is not objective.

Some of the benefits of working papers are:

• Documenting the audit processes and the results obtained,

• To create evidence that the audit is conducted in accordance with the relevant legal regulations,

• To indicate compliance with generally accepted auditing standards and international standards on auditing,

• To assist in the evaluation of the internal control system,

• To ensure that the audit is maintained properly,

• Helping the auditor to form an opinion,

• To constitute the basis for the preparation of the audit report,