Question 1

Subsequent discoveries of facts requiring the reissuance of financial statements arise from events occurring after the date of the auditor's report.

Accepted Answer

A) True 
 B)False

Question 2

If an attorney refuses to provide the auditor with information about material existing lawsuits or unasserted claims,current professional standards require that the auditor consider the refusal as a scope limitation.

Accepted Answer

A) True 
 B)False

Question 3

After the balance sheet date,but prior to the issuance of the audit report,the client suffers an uninsured loss of their inventory as a result of a fire.The amount of the loss is material.The auditor should

Accepted Answer

A) adjust the financial statements for the year under audit. 
B) add a paragraph to the audit report. 
C) advise the client to disclose the event in the notes to the financial statements. 
D) advise the client to delay issuing the financial statements until the economic loss can be determined. 
A) adjust the financial statements for the year under audit. 
B) add a paragraph to the audit report. 
C) advise the client to disclose the event in the notes to the financial statements. 
D) advise the client to delay issuing the financial statements until the economic loss can be determined.

Question 4

Which of the following statements is most correct about an auditor's required communication with management and those charged with corporate governance?

Accepted Answer

A) The auditor is required to inform those charged with governance about significant errors discovered and subsequently corrected by management. 
B) Any significant matter reported to those charged with governance must also be communicated to management. 
C) Communication is required before the audit report is issued. 
D) The auditor does not have any requirement to communicate with anyone other than the company's senior management. 
A) The auditor is required to inform those charged with governance about significant errors discovered and subsequently corrected by management. 
B) Any significant matter reported to those charged with governance must also be communicated to management. 
C) Communication is required before the audit report is issued. 
D) The auditor does not have any requirement to communicate with anyone other than the company's senior management.

Question 5

To make a final evaluation as to whether sufficient appropriate evidence has been accumulated,the auditor will do all of the following except

Accepted Answer

A) review the audit documentation for the entire audit to determine whether all material classes of transactions have been adequately tested. 
B) make sure that all parts of the audit program have been accurately completed and documented. 
C) obtain the management representation letter. 
D) decide whether the audit program is adequate. 
A) review the audit documentation for the entire audit to determine whether all material classes of transactions have been adequately tested. 
B) make sure that all parts of the audit program have been accurately completed and documented. 
C) obtain the management representation letter. 
D) decide whether the audit program is adequate.

Question 6

Auditing standards require the auditor to ________ other information included in annual reports pertaining directly to the financial statements.

Accepted Answer

A) audit 
B) express an opinion on 
C) read 
D) analyze 
A) audit 
B) express an opinion on 
C) read 
D) analyze

Question 7

Auditors of accelerated filer public companies

Accepted Answer

A) are responsible for reviewing subsequent events for a period of up to six months after the balance sheet date. 
B) must always dual-date their audit reports. 
C) must inquire about and consider any information about subsequent events that materially affects the effectiveness of internal control over financial reporting. 
D) must perform all of the above procedures. 
A) are responsible for reviewing subsequent events for a period of up to six months after the balance sheet date. 
B) must always dual-date their audit reports. 
C) must inquire about and consider any information about subsequent events that materially affects the effectiveness of internal control over financial reporting. 
D) must perform all of the above procedures.

Question 8

One of the primary approaches in dealing with uncertainties in loss contingencies uses a(n)________ threshold.

Accepted Answer

A) monetary 
B) materiality 
C) probability 
D) analytical 
A) monetary 
B) materiality 
C) probability 
D) analytical

Question 9

Distinguish between contingent liabilities and commitments.

Accepted Answer

Contingent liabilities are potential fut

Question 10

An auditor is reconciling the amounts included in the long-term debt footnotes to the information examined and supported in the audit files for long-term debt.Which audit objective is being satisfied?

Accepted Answer

A) accuracy and valuation 
B) occurrence and rights and obligations 
C) completeness 
D) classification and understandability 
A) accuracy and valuation 
B) occurrence and rights and obligations 
C) completeness 
D) classification and understandability

Subsequent discoveries of facts requiring the reissuance of financial statements arise from events occurring after the date of the auditor's report.

If an attorney refuses to provide the auditor with information about material existing lawsuits or unasserted claims,current professional standards require that the auditor consider the refusal as a scope limitation.

After the balance sheet date,but prior to the issuance of the audit report,the client suffers an uninsured loss of their inventory as a result of a fire.The amount of the loss is material.The auditor should

Which of the following statements is most correct about an auditor's required communication with management and those charged with corporate governance?

To make a final evaluation as to whether sufficient appropriate evidence has been accumulated,the auditor will do all of the following except

Auditing standards require the auditor to ________ other information included in annual reports pertaining directly to the financial statements.

Auditors of accelerated filer public companies

One of the primary approaches in dealing with uncertainties in loss contingencies uses a(n)________ threshold.

Distinguish between contingent liabilities and commitments.

An auditor is reconciling the amounts included in the long-term debt footnotes to the information examined and supported in the audit files for long-term debt.Which audit objective is being satisfied?

The Demand for Audit and Other Assurance Services

The Cpa Profession

Audit Reports

Professional Ethics

Legal Liability

Audit Responsibilities and Objectives

Audit Evidence

Audit Planning and Analytical Procedures

Materiality and Risk

Fraud Auditing

Internal Control and Coso Framework

Assessing Control Risk and Reporting on Internal Controls

Overall Audit Strategy and Audit Program

Audit of the Sales and Collection Cycle: Tests of Controls

Audit Sampling for Tests of Controls and Substantive Tests of Transactions

Completing the Tests in the Sales and Collection Cycle: Accounts Receivable

Audit Sampling for Tests of Details of Balances

Audit of the Acquisition and Payment Cycle: Tests of Controls,

Completing the Tests in the Acquisition and Payment Cycle:

Audit of the Payroll and Personnel Cycle

Audit of the Inventory and Warehousing Cycle

Audit of the Capital Acquisition and Repayment Cycle

Audit of Cash and Financial Instruments

Other Assurance Services

Internal and Governmental Financial Auditing and Operational Auditing

Filters

Exam 24: Completing the Audit

Subsequent discoveries of facts requiring the reissuance of financial statements arise from events occurring after the date of the auditor's report.

If an attorney refuses to provide the auditor with information about material existing lawsuits or unasserted claims,current professional standards require that the auditor consider the refusal as a scope limitation.

After the balance sheet date,but prior to the issuance of the audit report,the client suffers an uninsured loss of their inventory as a result of a fire.The amount of the loss is material.The auditor should

Which of the following statements is most correct about an auditor's required communication with management and those charged with corporate governance?

To make a final evaluation as to whether sufficient appropriate evidence has been accumulated,the auditor will do all of the following except

Auditing standards require the auditor to ________ other information included in annual reports pertaining directly to the financial statements.

Auditors of accelerated filer public companies

One of the primary approaches in dealing with uncertainties in loss contingencies uses a(n)________ threshold.

Distinguish between contingent liabilities and commitments.

An auditor is reconciling the amounts included in the long-term debt footnotes to the information examined and supported in the audit files for long-term debt.Which audit objective is being satisfied?

The Demand for Audit and Other Assurance Services

The Cpa Profession

Audit Reports

Professional Ethics

Legal Liability

Audit Responsibilities and Objectives

Audit Evidence

Audit Planning and Analytical Procedures

Materiality and Risk

Fraud Auditing

Internal Control and Coso Framework

Assessing Control Risk and Reporting on Internal Controls

Overall Audit Strategy and Audit Program

Audit of the Sales and Collection Cycle: Tests of Controls

Audit Sampling for Tests of Controls and Substantive Tests of Transactions

Completing the Tests in the Sales and Collection Cycle: Accounts Receivable

Audit Sampling for Tests of Details of Balances

Audit of the Acquisition and Payment Cycle: Tests of Controls,

Completing the Tests in the Acquisition and Payment Cycle:

Audit of the Payroll and Personnel Cycle

Audit of the Inventory and Warehousing Cycle

Audit of the Capital Acquisition and Repayment Cycle

Audit of Cash and Financial Instruments

Other Assurance Services

Internal and Governmental Financial Auditing and Operational Auditing

Filters