Question 1

_____________________________ work extends auditors' conclusion from the date of the interim testing to the date of the financial statements.

Accepted Answer

The answer of _____________________________ work extends auditors' conclusion from the...

Question 2

Roll-forward work normally occurs between what two dates?

Accepted Answer

A)  Beginning of the year under audit and audit report release date. 
B)  Date of the financial statements and audit report release date. 
C)  Beginning of the year under audit and date of the financial statements. 
D)  Date of the financial statements and date of the auditors' report. 
A)  Beginning of the year under audit and audit report release date. 
B)  Date of the financial statements and audit report release date. 
C)  Beginning of the year under audit and date of the financial statements. 
D)  Date of the financial statements and date of the auditors' report.

Question 3

The _________________________________ method of evaluating adjustments considers the aggregated effect of current and prior misstatements in the entity's balance sheet.

Accepted Answer

The answer of The _________________________________ method of evaluating adjustments considers...

Question 4

The auditing standards regarding subsequently discovered facts refers to knowledge obtained after

Accepted Answer

A)  The date the fieldwork began. 
B)  The date of the auditors' report. 
C)  The date of the financial statements. 
D)  The date interim audit work was complete. 
A)  The date the fieldwork began. 
B)  The date of the auditors' report. 
C)  The date of the financial statements. 
D)  The date interim audit work was complete.

Question 5

The primary reason auditors request responses to attorney letters is to provide auditors

Accepted Answer

A)  The probable outcome of asserted claims and pending or threatened litigation. 
B)  Corroboration of the information furnished by management about litigation, claims, and assessments. 
C)  The attorney's opinions of the client's historical experiences in recent similar litigation. 
D)  A description and evaluation of litigation, claims, and assessments that existed at the date of the financial statements. 
A)  The probable outcome of asserted claims and pending or threatened litigation. 
B)  Corroboration of the information furnished by management about litigation, claims, and assessments. 
C)  The attorney's opinions of the client's historical experiences in recent similar litigation. 
D)  A description and evaluation of litigation, claims, and assessments that existed at the date of the financial statements.

Question 6

The auditor ordinarily requests the attorney letter directly from the attorneys.

Accepted Answer

A) True 
 B)False

Question 7

A primary purpose of obtaining written representations is for management to acknowledge their responsibility for the fairness of the financial statements.

Accepted Answer

A) True 
 B)False

Question 8

Auditors have a responsibility to evaluate whether financial statements properly reflect all known events through the

Accepted Answer

A)  Date of the financial statements. 
B)  Date of the auditors' report. 
C)  Audit report release date. 
D)  Subsequent year's date of the financial statements. 
A)  Date of the financial statements. 
B)  Date of the auditors' report. 
C)  Audit report release date. 
D)  Subsequent year's date of the financial statements.

Question 9

Explain briefly auditors' responsibility for subsequently discovered facts existing at the date of the auditors' reports.

Accepted Answer

Auditors who become aware of facts that

Question 10

Auditors' initial source of information about litigation,claims,and assessments is the client's attorney.

Accepted Answer

A) True 
 B)False

Question 11

Following is a list of events that occur throughout an audit examination.Indicate,using the correct letter,the time period during which these events are most likely to occur.An event may occur in more than one time period.
A. Prior to the date of the financial statements.
B. Between the date of the financial statements and the date of the auditors' report.
C. Between the date of the auditors' report and the audit report release date.
D. After the audit report release date.

Accepted Answer

1.C,D,2.B,3.B,4.A,5.B,6.C,7.D

Question 12

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

Accepted Answer

A)  Confirming a sample of material accounts receivable established after year-end. 
B)  Comparing the financial statements being reported on with those of the prior period. 
C)  Reading minutes of meetings of owners, management, or those charged with governance held after the date of the financial statements. 
D)  Inquiring as to whether any unusual adjustments were made after year-end. 
A)  Confirming a sample of material accounts receivable established after year-end. 
B)  Comparing the financial statements being reported on with those of the prior period. 
C)  Reading minutes of meetings of owners, management, or those charged with governance held after the date of the financial statements. 
D)  Inquiring as to whether any unusual adjustments were made after year-end.

Question 13

Which of the following best describes the auditors' responsibility with respect to management's estimates?

Accepted Answer

A)  Verifying the mathematical accuracy of management estimates. 
B)  Assessing the likelihood that actual results will be consistent with management's estimates. 
C)  Evaluating the reasonableness of management's estimates. 
D)  Identifying how the entity's failure to achieve management's estimates will influence users' decisions. 
A)  Verifying the mathematical accuracy of management estimates. 
B)  Assessing the likelihood that actual results will be consistent with management's estimates. 
C)  Evaluating the reasonableness of management's estimates. 
D)  Identifying how the entity's failure to achieve management's estimates will influence users' decisions.

Question 14

A partner of the accounting firm who has not been involved in the audit performs an engagement quality review of documentation.This review usually focuses on

Accepted Answer

A)  The fair presentation of the financial statements in conformity with GAAP. 
B)  Irregularities involving the client's management and its employees. 
C)  The materiality of the adjusting entries proposed by the audit staff. 
D)  The communication of internal control deficiencies to the client's audit committee (or those charged with governance). 
A)  The fair presentation of the financial statements in conformity with GAAP. 
B)  Irregularities involving the client's management and its employees. 
C)  The materiality of the adjusting entries proposed by the audit staff. 
D)  The communication of internal control deficiencies to the client's audit committee (or those charged with governance).

Question 15

_____________________________ are used by auditors to evaluate the relationship among financial and nonfinancial data.

Accepted Answer

Analytical

Question 16

While useful,analytical procedures are not required in the final review stages of the audit.

Accepted Answer

A) True 
 B)False

Question 17

Subsequent events occur between which two dates?

Accepted Answer

A)  Date of the financial statements and date of the auditors' report. 
B)  Date of the auditors' report and audit report release date. 
C)  Date of the financial statements and audit report release date. 
D)  Audit report release date and beginning of subsequent year's audit. 
A)  Date of the financial statements and date of the auditors' report. 
B)  Date of the auditors' report and audit report release date. 
C)  Date of the financial statements and audit report release date. 
D)  Audit report release date and beginning of subsequent year's audit.

Question 18

Define what is meant by the term "subsequent event." In addition,identify the two types of subsequent events and indicate how auditors should modify the engagement for the discovery of subsequent events.

Accepted Answer

A subsequent event is an event that occu

Question 19

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

Accepted Answer

A)  Inspecting title documents to verify whether any assets are pledged as collateral. 
B)  Confirming with third parties the details of arrangements to maintain financial support. 
C)  Reconciling the client's cash balance with the cutoff bank statement and the bank confirmation. 
D)  Comparing the entity's depreciation and asset capitalization policies to other entities in the industry. 
A)  Inspecting title documents to verify whether any assets are pledged as collateral. 
B)  Confirming with third parties the details of arrangements to maintain financial support. 
C)  Reconciling the client's cash balance with the cutoff bank statement and the bank confirmation. 
D)  Comparing the entity's depreciation and asset capitalization policies to other entities in the industry.

Question 20

Attorneys should always provide a dollar estimate of the amount of potential loss for items included in the attorney letter.

Accepted Answer

A) True 
 B)False

_____________________________ work extends auditors' conclusion from the date of the interim testing to the date of the financial statements.

Roll-forward work normally occurs between what two dates?

The _________________________________ method of evaluating adjustments considers the aggregated effect of current and prior misstatements in the entity's balance sheet.

The auditing standards regarding subsequently discovered facts refers to knowledge obtained after

The primary reason auditors request responses to attorney letters is to provide auditors

The auditor ordinarily requests the attorney letter directly from the attorneys.

A primary purpose of obtaining written representations is for management to acknowledge their responsibility for the fairness of the financial statements.

Auditors have a responsibility to evaluate whether financial statements properly reflect all known events through the

Explain briefly auditors' responsibility for subsequently discovered facts existing at the date of the auditors' reports.

Auditors' initial source of information about litigation,claims,and assessments is the client's attorney.

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

Which of the following best describes the auditors' responsibility with respect to management's estimates?

A partner of the accounting firm who has not been involved in the audit performs an engagement quality review of documentation.This review usually focuses on

_____________________________ are used by auditors to evaluate the relationship among financial and nonfinancial data.

While useful,analytical procedures are not required in the final review stages of the audit.

Subsequent events occur between which two dates?

Define what is meant by the term "subsequent event." In addition,identify the two types of subsequent events and indicate how auditors should modify the engagement for the discovery of subsequent events.

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

Attorneys should always provide a dollar estimate of the amount of potential loss for items included in the attorney letter.

Auditing and Assurance Services

Professional Standards

Engagement Planning

Management Fraud and Audit Risk

Risk Assessment: Internal Control Evaluation

Employee Fraud and the Audit of Cash

Revenue and Collection Cycle

Acquisition and Expenditure Cycle

Production Cycle

Finance and Investment Cycle

Reports on Audited Financial Statements

Other Public Accounting Services

Professional Ethics

Legal Liability

Internal Governmental and Fraud Audits

Overview of Sampling

Attributes Sampling

Variables Sampling

Auditing in a Computerized Environment

Filters

Exam 11: Completing the Audit

_____________________________ work extends auditors' conclusion from the date of the interim testing to the date of the financial statements.

Roll-forward work normally occurs between what two dates?

The _________________________________ method of evaluating adjustments considers the aggregated effect of current and prior misstatements in the entity's balance sheet.

The auditing standards regarding subsequently discovered facts refers to knowledge obtained after

The primary reason auditors request responses to attorney letters is to provide auditors

The auditor ordinarily requests the attorney letter directly from the attorneys.

A primary purpose of obtaining written representations is for management to acknowledge their responsibility for the fairness of the financial statements.

Auditors have a responsibility to evaluate whether financial statements properly reflect all known events through the

Explain briefly auditors' responsibility for subsequently discovered facts existing at the date of the auditors' reports.

Auditors' initial source of information about litigation,claims,and assessments is the client's attorney.

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

Which of the following best describes the auditors' responsibility with respect to management's estimates?

A partner of the accounting firm who has not been involved in the audit performs an engagement quality review of documentation.This review usually focuses on

_____________________________ are used by auditors to evaluate the relationship among financial and nonfinancial data.

While useful,analytical procedures are not required in the final review stages of the audit.

Subsequent events occur between which two dates?

Define what is meant by the term "subsequent event." In addition,identify the two types of subsequent events and indicate how auditors should modify the engagement for the discovery of subsequent events.

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

Attorneys should always provide a dollar estimate of the amount of potential loss for items included in the attorney letter.

Auditing and Assurance Services

Professional Standards

Engagement Planning

Management Fraud and Audit Risk

Risk Assessment: Internal Control Evaluation

Employee Fraud and the Audit of Cash

Revenue and Collection Cycle

Acquisition and Expenditure Cycle

Production Cycle

Finance and Investment Cycle

Reports on Audited Financial Statements

Other Public Accounting Services

Professional Ethics

Legal Liability

Internal Governmental and Fraud Audits

Overview of Sampling

Attributes Sampling

Variables Sampling

Auditing in a Computerized Environment

Filters