Exam 12: Completing and Reporting on the Audit

Which of the following are examples of qualitative considerations that may cause misstatements of quantitatively immaterial amounts to be considered material?

Those charged with governance are accountable for ensuring that the entity achieves its objectives with regard to which of the following?

Generally, the further into the future an event is likely to take place, the greater the uncertainty surrounding the event.

Explain the difference between management's and the auditor's responsibility for the financial statements.

When Sydney Burns was unable to perform work on inventory because of a client's insistence that she not perform an inventory taking, what kind of audit opinion would she most Likely consider?

Discuss the factors that are relevant when management is assessing the going concern assumption.

Procedures used by an auditor when conducting a subsequent events review include:

When Eddie Okulicz released the audit report of C Corp. he did not anticipate that there would follow an announcement two days later that several days after year-end his client's Foreign subsidiary had been nationalized by Libya for non-compliance to environmental laws of The country. What type of subsequent event was this?

The final phase of an audit is to assess all of the audit evidence obtained and determine whether it is sufficient and appropriate.

Identify quantitative and qualitative considerations that are taken into account when the auditor evaluates whether misstatements either cause financial statements to be materially misstated or require additional disclosure.

When Paul Sliz was reviewing existing or possible obligations on the balance sheet, he was told that the outcome for these obligations was uncertain and that the company was awaiting a Future event. Paul Sliz was reviewing

Matters of governance interest that the auditor may wish to discuss with those charged with governance include:

Sufficiency relates to the quality of audit evidence gathered.

Which of the following are areas normally covered during the wrap-up of an audit engagement?

At year-end Marissa Albion sent out accounts receivable confirmations. One of the major customers of her client confirmed that they would not be able to pay off the receivable. The Client subsequently went bankrupt and an aggrieved shareholder of Marissa's client sued her Firm. What type of subsequent event was this?

Matters of governance that the auditor may wish to discuss with those charged with governance include any practical difficulties encountered in performing the audit.

A limitation on the scope of the auditor's work may result from:

Indicate whether you agree or disagree with the following statements and explain your reasoning. a) Steven Bischoff, the senior auditor at Martineau, Hellman and Nathan made the following statement to his audit team: "What constitutes sufficient appropriate audit evidence is a matter of judgment." b) Metropolitan Poultry Company operates as a specialty food distributor. Gordon Atkins, auditor, has told his staff that the bankruptcy of a customer at year-end should not be considered a type 1 event. c) Mississauga Ice Pucks auditor Dave Ganesh found an omission of a disclosure in the financial statements of the hockey team. He called this an error. d) Stacey Kurvers was told by the client that a limitation in the scope of his work would require a modification to the audit report.

Which items are matters of governance interest that an auditor would wish to discuss with those charged with governance?

An unqualified audit report with an emphasis of matter should be issued if a subsequent event has occurred that has resulted in a new audit report being prepared on a revised financial statement.