Exam 16: Auditing Operations and Completing the Audit

Which of the following information need not be reported on in the auditors' report if the information is considered to be properly stated after performing appropriate procedures?

Subsequent events that provide additional evidence as to conditions that existed at the balance sheet date may result in adjusting journal entries.

A common audit procedure in the audit of payroll transactions involves tracing selected items from the payroll journal to employee time cards that have been approved by supervisory personnel.This procedure is designed to provide evidence in support of the audit proposition that:

Specific misstatement in one of a client's 2,000 accounts receivable is referred to as a(n):

The Miscellaneous Revenue account should only be analyzed if it is material in amount.

An approach that quantifies the total likely misstatement as of the current year-end based on the effects of reflecting misstatements during the current year (and not considering any unadjusted previous year misstatements)is referred to as the:

The statement that best expresses the auditor's responsibility with respect to events occurring between the balance sheet date and the end of his audit is that:

Authorization of which of the following is least likely to be found during a review of the minutes of the board of directors?

If,after issuing an audit report,the auditors find that they have failed to perform certain significant audit procedures they should first:

An example of an internal control weakness is to assign the personnel department responsibility for:

If management fails to list an unasserted claim in the letter of inquiry to a lawyer,the lawyer is not required to inform the auditors of the omission.

Management estimates the company's allowance for doubtful accounts as $200,000,and the auditors develop an estimate that suggests that the amount should be between $230,000 and $250,000.The known misstatement in this situation is:

Which of the following is an analytical procedure that should be applied to the income statement?

Which of the following is the best reason why the auditors should consider observing a client's distribution of regular payroll checks?

In evaluating whether there is a sufficiently low probability of material misstatement in the financial statements,the auditors accumulate:

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

Which of the following is not correct relating to representation letters?

The auditors' primary means of obtaining corroboration of management's information concerning litigation is a:

Auditors must communicate internal control "significant deficiencies" to:

Which of the following statements ordinarily is not included among the written client representations made by the chief executive officer and the chief financial officer?