Exam 24: Completing the Audit

At the completion of the audit,management is typically asked to make a written statement as a part of the engagement letter that it is aware of no undisclosed contingent liabilities.

With what types of contingencies might an auditor be concerned?

In connection with the annual audit,which of the following is not a "subsequent events" procedure?

If an auditor concludes there are contingent liabilities,then he or she must evaluate the

Define the term contingent liability and discuss the criteria accountants and auditors use to classify these accounting events.

The auditor's responsibility for "reviewing the subsequent events" of a public company that is about to issue new securities is normally limited to the period of time

When an auditor reviews the financial statements to determine if assets are properly classified between current and noncurrent,he is satisfying the audit objective of occurrence and rights and obligations.

Which type of subsequent event requires consideration by management and evaluation by the auditor?

Auditors often integrate procedures for presentation and disclosure objectives with

A commitment is best described as

Which of the following is a contingent liability with which an auditor is particularly concerned?

Which of the following audit procedures would most likely assist an auditor in identifying conditions and events that may indicate there could be substantial doubt about an entity's ability to continue as a going concern?

In a standard inquiry to the client's attorney letter,the attorney is requested to communicate about contingencies up to the balance sheet date.

Many of the audit procedures for finding contingencies are usually performed as an integral part of various segments of the audit rather than as a separate activity near the end of the audit.

As directed by the Sarbanes-Oxley Act,

Results from the final analytical procedures may indicate that additional audit evidence is necessary.

Which of the following is not a common audit procedure used to search for contingent liabilities?

Inquiries of management regarding the possibility of unrecorded contingencies will be useful in uncovering

Which of the following statements is correct?

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 the second category?