The use of standard operating procedure questionnaires in audit fieldwork can be beneficial because.

These questionnaires can both identify discrepancies and educate clients.
Standard operating procedures are essential to the effectiveness and efficiency of operations.
These questionnaires are more comprehensive than are other types of techniques for gathering data during fieldwork.
These questionnaires do not normally require prior clearance with management of the audited area.

Answer(s): A

Checklists used to assess audit risk have been criticized for all of the following reasons except:

Providing a false sense of security that all relevant factors are addressed.
Inappropriately implying equal weight to each item on the checklist.
Decreasing the uniformity of data acquisition.
Being incapable of translating the experience or sound reasoning intended to be captured by each item on the checklist.

Answer(s): C

A limitation of using ratio analysis in an audit engagement is that it:

Often uses financial information provided by management which has not been reviewed for reliability and validity.
Is an expensive method of testing.
Requires computer software in order to develop meaningful interpretations of data.
Is useful only when comparisons can be made across other industries.

Answer(s): A