Exam 11: Completing the Audit

K.Navarre,CPA,has just issued her report on Big Blue's financial statements.Following the audit report release date,she learned of an event that occurred after the date of the auditors' report.What is Navarre's most appropriate response?

Which of the following conditions or set of circumstances would not ordinarily raise questions about the entity's ability to continue as a going concern:

Orange Corporation was audited for the year ended December 31.The audit was completed on January 25; prior to the release of the report,auditors learned of a two-for-one stock split on February 1.If dual dating is used,what are the proper dates for the auditors' reports?

For each of the following types of communications,indicate (a)the party issuing or providing the communication,(b)the party receiving the communication,and (c)the time period during which the communication is typically issued. a.Acceptance letter. b.Attorney letter response. c.Communication with individuals charged with governance. d.Engagement letter. e.Internal control deficiency communication. f.Management letter. g.Written representations.

After the audit report release date,the auditors determine that an important auditing procedure was omitted.Which of the following initial courses of action is most appropriate?

Which of these persons generally does not participate in writing the management letter?

A form of communication used by auditors to corroborate information received orally from the client during the audit examination is a(n):

Which of the following would ordinarily not be performed in the auditors' examination of litigation,claims,and assessments?

Which of the following is the most effective method of identifying potential earnings management attempts?

Which of the following is not ordinarily associated with the time period following the audit report release date?

Auditors must complete various phases of an audit after the date of the financial statements.The auditors' responsibility for matters affecting the client extends from the date of the financial statements to the

Which of the following statements is most likely to be included in an attorney letter?

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

Explain briefly (a)written representations,(b)internal control communications,and (c)management letters.In your answer,include the general content of the communication,the parties involved with the communication,the required form of the communication,and whether the communication is required under generally accepted auditing standards.

Interim testing is ordinarily done prior to the date of the financial statements.

_____________________________ are necessary audit procedures that were not performed prior to the audit report release date that may come to the auditors' attention as a result of a PCAOB inspection,external peer review,or firm's internal inspection program.

Which party should request a letter regarding litigation,claims,and assessments from the client's attorney?

Which of the following would not ordinarily be considered when using analytical procedures to verify the overall reasonableness of revenue and expense accounts?

If a necessary audit procedure has been omitted,auditors should first identify whether individuals are currently relying on the client's financial statements and auditors' reports.

Interim testing occurs between the _________________________ of the year and the date of the financial statements.