Question 1

An attorney is responding to an independent auditor as a result of the entity's letter of inquiry. The attorney may appropriately limit the response to

Accepted Answer

A)  Asserted claims and litigation. 
B)  Matters to which the attorney has given substantive attention in the form of legal consultation or representation. 
C)  Asserted, overtly threatened, or pending claims and litigation. 
D)  Items that have an extremely high probability of being resolved to the entity's detriment. 
A)  Asserted claims and litigation. 
B)  Matters to which the attorney has given substantive attention in the form of legal consultation or representation. 
C)  Asserted, overtly threatened, or pending claims and litigation. 
D)  Items that have an extremely high probability of being resolved to the entity's detriment.

Question 2

Which of the following situations would require adjustment to or disclosure in the financial statements?

Accepted Answer

A)  A merger discussion. 
B)  The application for a patent on a new production process. 
C)  Discussions with a customer that could lead to a 40 percent increase in the entity's sales if agreement is successful. 
D)  The bankruptcy of a customer who regularly purchased 30 percent of the company's output. 
A)  A merger discussion. 
B)  The application for a patent on a new production process. 
C)  Discussions with a customer that could lead to a 40 percent increase in the entity's sales if agreement is successful. 
D)  The bankruptcy of a customer who regularly purchased 30 percent of the company's output.

Question 3

"There are no violations or possible violations of laws or regulations whose effects should be considered for disclosure in the financial statements or as a basis for recording a loss contingency." The foregoing passage most likely is from a(an)

Accepted Answer

A)  Entity engagement letter. 
B)  Report on compliance with laws and regulations. 
C)  Management representation letter. 
D)  Attestation report on internal controls. 
A)  Entity engagement letter. 
B)  Report on compliance with laws and regulations. 
C)  Management representation letter. 
D)  Attestation report on internal controls.

An attorney is responding to an independent auditor as a result of the entity's letter of inquiry. The attorney may appropriately limit the response to

Which of the following situations would require adjustment to or disclosure in the financial statements?

"There are no violations or possible violations of laws or regulations whose effects should be considered for disclosure in the financial statements or as a basis for recording a loss contingency." The foregoing passage most likely is from a(an)

An Introduction to Assurance and Financial Statement Auditing

The Financial Statement Auditing Environment

Audit Planning, Types of Audit Tests, and Materiality

Risk Assessment

Evidence and Documentation

Internal Control in a Financial Statement Audit

Auditing Internal Control Over Financial Reporting

Audit Sampling: An Overview and Application to Tests of Controls

Audit Sampling: An Application to Substantive Tests of Account Balances

Auditing the Revenue Process

Auditing the Purchasing Process

Auditing the Human Resource Management Process

Auditing the Inventory Management Process

Auditing the Financing Investing Process: Prepaid Expenses Intangible Assets and Property Plant and Equipment

Auditing the Financing Investing Process: Long-Term Liabilities Stockholders Equity and Income Statement Accounts

Auditing the Financinginvesting Process: Cash and Investments

Reports on Audited Financial Statements

Professional Conduct, Independence, and Quality Control

Legal Liability

Assurance, Attestation, and Internal Auditing Services

Filters

Exam 17: Completing the Audit Engagement

An attorney is responding to an independent auditor as a result of the entity's letter of inquiry. The attorney may appropriately limit the response to

Which of the following situations would require adjustment to or disclosure in the financial statements?

"There are no violations or possible violations of laws or regulations whose effects should be considered for disclosure in the financial statements or as a basis for recording a loss contingency." The foregoing passage most likely is from a(an)

An Introduction to Assurance and Financial Statement Auditing

The Financial Statement Auditing Environment

Audit Planning, Types of Audit Tests, and Materiality

Risk Assessment

Evidence and Documentation

Internal Control in a Financial Statement Audit

Auditing Internal Control Over Financial Reporting

Audit Sampling: An Overview and Application to Tests of Controls

Audit Sampling: An Application to Substantive Tests of Account Balances

Auditing the Revenue Process

Auditing the Purchasing Process

Auditing the Human Resource Management Process

Auditing the Inventory Management Process

Auditing the Financing Investing Process: Prepaid Expenses Intangible Assets and Property Plant and Equipment

Auditing the Financing Investing Process: Long-Term Liabilities Stockholders Equity and Income Statement Accounts

Auditing the Financinginvesting Process: Cash and Investments

Reports on Audited Financial Statements

Professional Conduct, Independence, and Quality Control

Legal Liability

Assurance, Attestation, and Internal Auditing Services

Filters