Exam 17: Completing the Audit Engagement

An example of a Type I event or condition is the settlement of a lawsuit after the balance sheet date for an amount different from the amount recorded in the year-end financial statements.

(True/False)

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Question 61

An auditor's decision concerning whether or not to "dual date" the audit report is based upon the auditor's willingness to

(Multiple Choice)

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Question 62

The management letter is used

(Multiple Choice)

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Question 63

Generally,loss contingencies that are judged to be remote

(Multiple Choice)

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Question 64

The responsibility to assess the entity's ability to continue as a going concern rests solely with the auditor.

(True/False)

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Question 65

Reading contracts and loan agreements is one way to identify unrecorded contingent liabilities.

(True/False)

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Question 66

An example of a Type II event or condition is an uncollectible account receivable resulting from deterioration in a customer's financial condition prior to year end,about which the entity is unaware.The customer declares bankruptcy after the balance sheet date but prior to the issuance of the financial statements.

(True/False)

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Question 67

Ajax,Inc.,is an affiliate of Borax,Inc.and is audited by another audit firm.Which of the following is most likely to be used by the auditor of Borax to obtain assurance that all guarantees by Borax of Ajax's indebtedness have been detected?

(Multiple Choice)

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Question 68

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

(Multiple Choice)

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Question 69

Identify the two primary types of subsequent events that require consideration by management and evaluation by the auditor and give two examples of each type.

(Essay)

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Question 70

The primary reason an auditor requests letters of inquiry be sent to an entity's attorneys is to provide the auditor with

(Multiple Choice)

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Question 71

A major customer of an entity suffers a fire after year-end,but just prior to completion of audit fieldwork.The entity believes that this event could have a significant direct effect on the financial statements.The auditor should

(Multiple Choice)

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Question 72

Which of the following matters is an auditor required to communicate to those charged with governance?

(Multiple Choice)

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Question 73

A disclosure of a contingent liability in the footnotes is made rather than adjusting the financial statement accounts when

(Multiple Choice)

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Question 74

The purpose of analytical procedures at the completion of the audit includes all of the following except:

(Multiple Choice)

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Question 75

Which of the following procedures would an auditor most likely perform to obtain evidence about an entity's subsequent events?

(Multiple Choice)

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Question 76

An auditor issued an audit report that was dual dated for a subsequent event that occurred after the completion of fieldwork but before issuance of the auditor's report.The auditor's responsibility for events occurring subsequent to the completion of fieldwork was

(Multiple Choice)

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Question 77

Harvey,CPA is preparing an audit program for the purpose of ascertaining the occurrence of subsequent events that may require adjustment or disclosure essential to a fair presentation of the financial statements in conformity with generally accepted accounting principles.Which one of the following procedures would be least appropriate for this purpose?

(Multiple Choice)

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Question 78

Which of the following procedures should an auditor generally perform regarding subsequent events?

(Multiple Choice)

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Question 79

If a lawyer refuses to furnish corroborating information regarding litigation,claims,and assessments,the auditor should

(Multiple Choice)

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Question 80

Showing 61 - 80 of 84

An example of a Type I event or condition is the settlement of a lawsuit after the balance sheet date for an amount different from the amount recorded in the year-end financial statements.

An auditor's decision concerning whether or not to "dual date" the audit report is based upon the auditor's willingness to

The management letter is used

Generally,loss contingencies that are judged to be remote

The responsibility to assess the entity's ability to continue as a going concern rests solely with the auditor.

Reading contracts and loan agreements is one way to identify unrecorded contingent liabilities.

Ajax,Inc.,is an affiliate of Borax,Inc.and is audited by another audit firm.Which of the following is most likely to be used by the auditor of Borax to obtain assurance that all guarantees by Borax of Ajax's indebtedness have been detected?

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

Identify the two primary types of subsequent events that require consideration by management and evaluation by the auditor and give two examples of each type.

The primary reason an auditor requests letters of inquiry be sent to an entity's attorneys is to provide the auditor with

A major customer of an entity suffers a fire after year-end,but just prior to completion of audit fieldwork.The entity believes that this event could have a significant direct effect on the financial statements.The auditor should

Which of the following matters is an auditor required to communicate to those charged with governance?

A disclosure of a contingent liability in the footnotes is made rather than adjusting the financial statement accounts when

The purpose of analytical procedures at the completion of the audit includes all of the following except:

Which of the following procedures would an auditor most likely perform to obtain evidence about an entity's subsequent events?

An auditor issued an audit report that was dual dated for a subsequent event that occurred after the completion of fieldwork but before issuance of the auditor's report.The auditor's responsibility for events occurring subsequent to the completion of fieldwork was

Which of the following procedures should an auditor generally perform regarding subsequent events?

If a lawyer refuses to furnish corroborating information regarding litigation,claims,and assessments,the auditor should

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 Financinginvesting Process: Prepaid Expenses, Intangible Assets, and Property, Plant, and Equipment

Auditing the Financinginvesting Process: Long-Term Liabilities, Stockholders Equity, and Income Statement Accounts

Auditing the Financinginvesting Process: Cash and Investments

Reports on Audited Financial Statements

Professsional Conduct,Independence,and Quality Control

Legal Liability

Assurance,Attestation,amd Internal Auditing Services-professional Judgement Module

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