Exam 15: Ensuring Audit Quality in Completing the Audit

The letter of audit inquiry to the client's lawyer is the primary source of corroborative evidence of management's description of litigation,claims and assessments against them.

The primary source of information about contingencies is the client's attorney.

For registration statements filed with the SEC preparatory to selling securities,the subsequent events review goes from

Analytical procedures do not need to be performed at the end of the audit as these procedures should have been already performed in the beginning of the audit and as a substantive test during the audit.

Which one of the following is not a purpose of the management representation letter?

The Sarbanes-Oxley Act requires the CEO and the CFO to certify that the financial statements are fairly presented in accordance with GAAP.

The auditor may discover an event after the last date of field work,but prior to the issuance of the report.If this event is disclosed,the auditor has no other option but to extend the review for subsequent events.

Before releasing the audit report,the auditor should do which of the following?

The auditor is responsible for subsequent events from

The driver of audit quality under the Financial Reporting Council's Audit Quality Framework that relates to audit methodology and tools applied to the audit is which of the following?

A management representation letter is a letter to the auditors that is required to be signed by the client's chief executive and chief financial officer in order to remind management of its responsibility for the financial statements and confirm oral responses given to the auditor during the audit.

Which one of the following is not an example of additional procedures that relate to the discovery of subsequent events?

Which of the following is a tool that is best used by the audit team to determine if the client has included all disclosures?

Which one of the following is not a key condition indicating doubt regarding an entity's ability to continue as a going-concern?

The skills and qualities of the engagement team is likely to provide a positive contribution to audit quality where

Which of the following is not a required communication with the audit committee?

After an audit report is issued,the auditor discovers through a peer review that an important audit procedure has been omitted.The auditor should do which of the following?

In auditing for subsequent events the auditor should read the minutes of meetings of the board of directors and stockholder meetings from year end through the last date of field work.

One of the primary drivers of the Financial Reporting Council Audit Quality Framework is audit firm culture.

The responsibility for designing and maintaining policies and procedures to identify,evaluate,and account for contingencies rests with whom?