I'm milking this audit training thing for all it's worth!
There were some really silly questions about some of the case studies. For your reading pleasure, I have provided the questions and some of the actual answers I submitted.
Q. For what key piece of audit evidence did the auditor rely solely on representations from the client?
A. He relied on sticky notes he found on the CFO's desk.
Q. What could he have done to corroborate these representations?
A. He could have gone to the sticky note manufacturer to see whether they were in cahoots with the pencil industry. This would enable him to research the effects of collusion on the bond rate of the balance sheet depreciation, in summarized aggregate detail.
Q. If the auditor had “kept his eyes open,” what should he have seen?
A. He should have seen the clients dancing on the conference table, wearing nothing but $100 bills.
Hey, it's a survival technique.
How would you have answered?