Exam 11: Completion and Review

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?

A representation letter issued by a client:

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

Which of the following provisions is not a basic characteristic of a letter of support?

An auditor has received a solicitor's letter in which no significant disagreements with the client's assessments of contingent liabilities were noted.The resignation of the client's solicitor shortly after receipt of the letter should alert the auditor that:

The property portfolio of Land Pty Ltd (Land) is stated at a value of $1 million in excess of its current market value.Land is a non-reporting entity and does not apply the provisions of AASB 116 in the preparation of its financial report.The directors believe that it would be inappropriate to write the properties down to market value as it is their intention to hold the properties as a long-term investment and the properties will eventually recover their value.An independent valuer has advised the auditor that the property will eventually recover its full value.Sufficient appropriate audit evidence to support the value of the property would include obtaining a letter of representation from management confirming:

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

Which of the following statements is correct?

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

Orange Ltd's directors voted immediately after the year-end of 30 June 20X0 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 20X0 financial report?

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

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

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

Samantha Roberts has audited the financial report of Restoration Ltd for the year ended 30 June 20X0.Although Samantha's audit fieldwork was completed on 24 August 20X0, her auditor's report was signed on 27 August 20X0 and sent to management that day.The management of Restoration Ltd advised Samantha that their annual report, which will be mailed to shareholders on 7 October 20X0, will also include an unaudited financial report for the first quarter ended 30 September 20X0.Under the circumstances, Samantha is responsible for undertaking subsequent events audit procedures through to:

After an auditor has issued an auditor's report on the financial report of an entity, the auditor should:

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

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?

Which of the following auditing procedures is ordinarily performed last?