Question 1

Type II subsequent events are conditions that require an adjustment to the account balance shown on the financial statements.

Accepted Answer

A) True 
 B)False

Question 2

After an auditor has issued an audit report on a nonpublic entity,there is no obligation to make any further audit tests or inquiries with respect to the audited financial statements covered by that report unless

Accepted Answer

A)  new information comes to the auditor's attention concerning an event that occurred prior to the date of the auditor's report that may have affected the auditor's report. 
B)  material adverse events occur after the date of the auditor's report. 
C)  final determination or resolution was made on matters that had resulted in a qualification in the auditor's report. 
D)  final determination or resolution was made of a contingency that had been disclosed in the financial statements and no liability arose from the resolution. 
A)  new information comes to the auditor's attention concerning an event that occurred prior to the date of the auditor's report that may have affected the auditor's report. 
B)  material adverse events occur after the date of the auditor's report. 
C)  final determination or resolution was made on matters that had resulted in a qualification in the auditor's report. 
D)  final determination or resolution was made of a contingency that had been disclosed in the financial statements and no liability arose from the resolution.

Question 3

The refusal of an entity's attorney to provide a representation on the legality of a particular act committed by the entity is generally

Accepted Answer

A)  sufficient reason to issue a "subject to" qualified opinion. 
B)  considered to be a scope limitation. 
C)  insufficient reason to modify the auditor's report because of the attorney's obligation of confidentiality. 
D)  proper grounds to withdraw from the engagement without further consideration. 
A)  sufficient reason to issue a "subject to" qualified opinion. 
B)  considered to be a scope limitation. 
C)  insufficient reason to modify the auditor's report because of the attorney's obligation of confidentiality. 
D)  proper grounds to withdraw from the engagement without further consideration.

Question 4

Which of the following subsequent events will be least likely to result in an adjustment to the financial statements?

Accepted Answer

A)  Culmination of events affecting the realization of accounts receivable owned as of the balance sheet date. 
B)  Culmination of events affecting the realization of inventories owned as of the balance sheet date. 
C)  Material changes in the settlement of liabilities that were estimated as of the balance sheet date. 
D)  Material changes in the quoted market prices of listed investment securities since the balance sheet date. 
A)  Culmination of events affecting the realization of accounts receivable owned as of the balance sheet date. 
B)  Culmination of events affecting the realization of inventories owned as of the balance sheet date. 
C)  Material changes in the settlement of liabilities that were estimated as of the balance sheet date. 
D)  Material changes in the quoted market prices of listed investment securities since the balance sheet date.

Type II subsequent events are conditions that require an adjustment to the account balance shown on the financial statements.

After an auditor has issued an audit report on a nonpublic entity,there is no obligation to make any further audit tests or inquiries with respect to the audited financial statements covered by that report unless

The refusal of an entity's attorney to provide a representation on the legality of a particular act committed by the entity is generally

Which of the following subsequent events will be least likely to result in an adjustment to the financial statements?

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

Filters

Exam 17: Completing the Audit Engagement

Type II subsequent events are conditions that require an adjustment to the account balance shown on the financial statements.

After an auditor has issued an audit report on a nonpublic entity,there is no obligation to make any further audit tests or inquiries with respect to the audited financial statements covered by that report unless

The refusal of an entity's attorney to provide a representation on the legality of a particular act committed by the entity is generally

Which of the following subsequent events will be least likely to result in an adjustment to the financial statements?

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

Filters