Exam 17: Completing the Audit

arrow
  • Select Tags
search iconSearch Question
flashcardsStudy Flashcards
  • Select Tags

What are the conditions required for the existence of a contingent liability?

(Essay)
4.9/5
(39)

Management representation letters are required by professional auditing standards, whereas management letters are optional.

(True/False)
4.9/5
(40)

A letter of representation written by the client's management to the auditor formalises resolutions of disagreements about different matters throughout the audit.

(True/False)
4.9/5
(35)

Although the management representation letter is typed on the client's letterhead and signed by the client, it is common for the auditor to prepare the letter.

(True/False)
4.8/5
(40)

If, during the completion phase of the audit, the auditor determines that he or she has obtained sufficient evidence, but it does not warrant a conclusion that the financial statements are fairly stated, there are two choices: either the statements must be revised to the auditor's satisfaction, or an except for opinion or a disclaimer of opinion must be issued.

(True/False)
4.9/5
(35)

If, after the accumulation of final evidence and during the evaluation of results, the auditor concludes that there is sufficient evidence but it does not support a conclusion of fairly presented financial statements, the auditor has two choices:

(Multiple Choice)
4.9/5
(39)

The entire working papers are reviewed by a staff member who has no experience of the engagement.

(True/False)
4.7/5
(39)

What is the purpose of a management letter?

(Essay)
4.7/5
(37)

'A potential future obligation to an outside party for an unknown amount resulting from activities that have already taken place contingent on a future event' is the definition of:

(Multiple Choice)
4.8/5
(40)

Which one of the following is NOT an audit procedure that is commonly used to search for contingent liabilities?

(Multiple Choice)
4.8/5
(31)

The statement that BEST expresses the auditor's responsibility with respect to events occurring between the balance sheet date and the end of the audit examination is that:

(Multiple Choice)
4.8/5
(37)

A client has a calendar year- end. Listed below are four events that occurred after 31 December. Which one of these subsequent events might result in adjustment of the 31 December financial statements?

(Multiple Choice)
4.8/5
(39)

Although there is no professional requirement to do so on audit engagements, auditors normally issue a formal 'management' letter to their clients. This letter serves the following purpose/s:

(Multiple Choice)
4.9/5
(44)

Which one of the following is a required condition for a contingent liability to exist?

(Multiple Choice)
4.9/5
(33)

Which one of the following items would NOT be of concern to the auditor as a potential contingent liability? In each case, the event could generate a loss of $20 000.

(Multiple Choice)
4.9/5
(35)

Which one of the following material events occurring subsequent to the balance sheet date would require an adjustment to the financial statements before they could be issued?

(Multiple Choice)
4.8/5
(30)

If an auditor discovers that previously issued financial statements are misleading, the most desirable approach to follow is to request that the client issue an immediate revision of the financial statements containing an explanation of the reasons for the revision.

(True/False)
4.8/5
(43)

During the final review of working papers and financial statements, it is common to have the analytical procedures done by a:

(Multiple Choice)
4.8/5
(36)

A lawsuit has been filed against your client. If, in the opinion of legal counsel, the likelihood your client will lose the lawsuit is remote, no financial statement accrual or disclosure of the potential loss is required.

(True/False)
4.9/5
(44)

The audit procedures for the subsequent events review can be divided into two categories: (1) procedures normally integrated as a part of the verification of year- end account balances and (2) those performed specifically for the purpose of discovering subsequent events. Which of the following procedures is in category 2?

(Multiple Choice)
4.7/5
(26)
Showing 61 - 80 of 100
close modal

Filters

  • Essay(0)
  • Multiple Choice(0)
  • Short Answer(0)
  • True False(0)
  • Matching(0)