Exam 24: Completing the Audit

Auditing standards make it clear that the auditor is responsible for identifying and deciding the appropriate accounting treatment for contingent liabilities due to the complexity of this topic.

When communicating with the audit committee and management,

The letter of representation is prepared on the CPA firm's letterhead, addressed to the client's chief executive officer, and signed by the audit engagement partner.

Which 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?

The auditor's primary concern relative to presentation and disclosure-related objectives is

The standard letter sent by the auditor to the attorney requests the attorney communicate about contingencies up to approximately the date of the auditor's report.

You are auditing Rodgers and Company. You are aware of a potential loss due to noncompliance with environmental regulations. Management has assessed that there is a 40% chance that a $10M payment could result from the non-compliance. The appropriate financial statement treatment is to

AICPA reporting standards do not require the communication of key audit matters, but do provide guidance for how to communicate these matters if the terms of the engagement require such disclosure.

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

What needs to be included in a standard inquiry to the client's attorney letter sent to a client's legal counsel?

Which of the following procedures and methods are important in assessing a company's ability to continue as a going concern?

The auditor's responsibility with respect to events occurring between the balance sheet date and the end of the audit examination is best expressed by which of the following statements?

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?

Which of the following groups has the responsibility for identifying and deciding the appropriate accounting treatment for recording or disclosing contingent liabilities?

An auditor's decision concerning whether or not to dual date an audit report is primarily based on the auditor's decision to

Describe some audit procedures commonly used to search for contingent liabilities.

The letter of representation obtained from an audit client should be

The auditor has a responsibility to review transactions and activities occurring after the balance sheet date to determine whether anything occurred that might affect the statements being audited. The procedures required to verify these transactions are commonly referred to as the review for

At the completion of the audit, management is asked to make a written statement that it is not aware of any undisclosed contingent liabilities. This statement would appear in the

When should auditors generally assess a client's ability to continue as a going concern?