Exam 13: Completing and Reporting on the Audit

Explain why the global financial crisis has resulted in the number of potential and actual legal liability insurance claims and explain how auditors can deal with the risk of litigation in tough economic times.

What are examples of matters of governance interest that the auditor may wish to discuss with those charged with governance.

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

Explain the difference between type 1 and type 2 subsequent events and provide examples of each type of event.

Explain the potential threats to independence relating to audit fees and how an auditor can safeguard against these threats.

The going concern assumption means the viability of a business to

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.

Which of the following is a procedure used to identify subsequent events?

A limitation on the scope of the auditor's work could result from an inability to perform procedures or an imposition by the entity.

If it is not possible to obtain sufficient appropriate audit evidence, the auditor should:

A public auditor in practice can only perform audits and review and is prohibited from completing non-assurance engagements such as compilations of financial information and tax engagements.

Which of the following is not an example of a type 2 subsequent event?

Joshua Hanson knew that his clients financial statements were misstated but the misstatement was not pervasive. What kind of audit report was he considering?

Which of the following factors is not relevant when management is assessing the going concern assumption?

An auditor's consideration of the going concern assumption does not include considering

Which of the following is not a step in forming an opinion on the financial statements?

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

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

When Kelly Lake was training her staff about the auditor's responsibility for subsequent events she made the two following statements: Which of the above statements, if any, is true?