Exam 13: Completing and Reporting on the Audit

When Vince Cummings 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. Vince Cummings was reviewing

A type 1 subsequent event provides evidence with respect to conditions that developed subsequent to year-end.

A subsequent event occurs:

If the auditor is not able to obtain sufficient appropriate audit evidence, the appropriate audit opinion will either be:

Which of the following statements regarding judgmental misstatements is incorrect?

The uninsured loss of inventory as a result of fire subsequent to year-end is an example of a type 2 subsequent event.

When an error or exception is identified during substantive testing, the first response is to:

The auditor's responsibility for the financial statements includes selecting and applying appropriate accounting policies.

Under the going concern assumption:

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

The auditor's report will not require a modified opinion where:

Subsequent events procedures are normally performed through to and including the date of the auditor's report.

When Olena Vardon mentioned that the financial statements were materially misstated, what kind of opinion 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.

Which of the following would not be included in an audit report?

For contingent liabilities, an auditor is required to review which of the following?

Ron Nucci is trying to gather sufficient appropriate evidence. Which of these are factors to consider in evaluating the sufficiency and appropriateness of audit evidence?

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

At year-end Annette Viau 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 Annette's client sued her Firm. What type of subsequent event was this?

As soon as practicable, the auditor should communicate weaknesses in internal controls to management or those charged with governance.