Exam 12: Completion and Review

Management's refusal to furnish a written representation on a matter that the auditor considers essential constitutes:

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

Which of the following procedures would an auditor most likely perform to obtain evidence about the occurrence of subsequent events?

Which set of assertions are tested when, during completion of the audit, the audit partner conducts a final review of the format of the entity's financial report?

After an auditor has issued an auditor's report on the financial report of an entity, there is no obligation to make any further audit tests or inquiries with respect to the audited financial report covered by that report unless:

The audit inquiry letter to the client's solicitor should be mailed only by the:

A major customer of an audit client suffers a fire just prior to completion of year-end fieldwork. The audit client believes that this event could have a significant direct effect on the financial report. The auditor should:

An auditor should obtain evidential matter relevant to all the following factors concerning third-party litigation against a client except the:

Auditors often request that the audit client send a letter of inquiry to those solicitors who have been consulted with respect to litigation, claims or assessments. The primary reason for this request is to provide the auditor with:

After an auditor has issued an auditor's report on the financial report of a non-public entity, there is no obligation to make any further audit tests or inquiries with respect to the audited financial report covered by that report unless:

An auditor is concerned with completing various phases of the examination after the balance date. This 'subsequent period' for audit testing extends to the date of the:

The date of the management representation letter should coincide with the:

Which of the following statements is not correct?

A solicitor's response to an auditor's request for information concerning litigation, claims and assessments will ordinarily contain which of the following?

When obtaining evidence regarding litigation against a client, the auditor would be least interested in determining:

Which of the following procedures would an auditor ordinarily perform during the review of subsequent events?

A written representation from a client's management which, among other matters, acknowledges responsibility for the fair presentation of the financial report, should be signed by the:

A representation letter issued by a client:

As a result of analytical procedures, the independent auditor determines that the gross profit percentage has declined from 30% in the preceding year to 20% in the current year. The auditor should:

Promotion Ltd's directors voted immediately after the year-end of 30 June 2010 to double its advertising budget for the coming year and authorised a change in advertising agencies. What is the effect of this event on the 30 June 2010 financial report?