Question 1

Engagement quality reviews are automatically required for which type of audit client?

Accepted Answer

A) All public companies. 
B) All private companies. 
C) All private and public companies. 
D) All listed public entities. 
A) All public companies. 
B) All private companies. 
C) All private and public companies. 
D) All listed public entities.

Question 2

Settlement of litigation when the event giving rise to the claim took place after the balance sheet date requires financial statement disclosure only.

Accepted Answer

A) True 
 B)False

Question 3

The primary purpose of the second partner review is to help in forming the audit opinion.

Accepted Answer

A) True 
 B)False

Question 4

The primary reason an auditor asks that enquiry letters be sent to a client's lawyers is to provide the auditor with ________.

Accepted Answer

A) the probable outcome of asserted claims and pending or threatened litigation 
B) corroboration of the information furnished by management about litigation,claims,and assessments 
C) the lawyer's opinion of the client's historical experiences in recent similar litigation 
D) a description and evaluation of litigation,claims,and assessments that existed at the balance sheet date 
A) the probable outcome of asserted claims and pending or threatened litigation 
B) corroboration of the information furnished by management about litigation,claims,and assessments 
C) the lawyer's opinion of the client's historical experiences in recent similar litigation 
D) a description and evaluation of litigation,claims,and assessments that existed at the balance sheet date

Question 5

Which of the following can illustrate a subsequent event that requires disclosure but not adjustment?

Accepted Answer

A) Settlement of long outstanding litigation. 
B) Collection of a customer debt that had been written off. 
C) Loss of inventory as a result of a flood occurring after year-end. 
D) An additional tax assessment on prior income. 
A) Settlement of long outstanding litigation. 
B) Collection of a customer debt that had been written off. 
C) Loss of inventory as a result of a flood occurring after year-end. 
D) An additional tax assessment on prior income.

Question 6

For audit purposes,subsequent events are defined as events that occur ________.

Accepted Answer

A) any time after balance sheet date 
B) after the date of the audit report 
C) after the balance sheet date but prior to the date of the audit report 
D) after the date of the audit report and concern contingencies that are not reflected in the financial statements 
A) any time after balance sheet date 
B) after the date of the audit report 
C) after the balance sheet date but prior to the date of the audit report 
D) after the date of the audit report and concern contingencies that are not reflected in the financial statements

Question 7

The primary source of information that the auditor can use in corroborating information about litigation,claims,and assessments is the ________.

Accepted Answer

A) client's lawyer 
B) court records 
C) client's management 
D) independent auditor 
A) client's lawyer 
B) court records 
C) client's management 
D) independent auditor

Question 8

Which of the following items would appear in a management letter of representation?

Accepted Answer

A) That a physical inventory was taken,and properly valued. 
B) That the control systems are operating effectively. 
C) That management has adequate insurance to ensure its ongoing operations. 
D) That all financial records and related data were made available to the auditors. 
A) That a physical inventory was taken,and properly valued. 
B) That the control systems are operating effectively. 
C) That management has adequate insurance to ensure its ongoing operations. 
D) That all financial records and related data were made available to the auditors.

Question 9

What are the auditors' responsibilities regarding subsequent events?

Accepted Answer

Auditors have an active,procedural respo

Question 10

A working paper reference index reflects ________.

Accepted Answer

A) all balance sheet accounts 
B) all income statement accounts 
C) all trial balance accounts 
D) all capital assets 
A) all balance sheet accounts 
B) all income statement accounts 
C) all trial balance accounts 
D) all capital assets

Question 11

A subsequent event involving the issue of bonds payable or share capital requires ________.

Accepted Answer

A) financial statement disclosure only 
B) restatement of prior years' financial statements 
C) adjustment to financial statement numbers 
D) no disclosure or financial statement adjustment 
A) financial statement disclosure only 
B) restatement of prior years' financial statements 
C) adjustment to financial statement numbers 
D) no disclosure or financial statement adjustment

Question 12

Primary responsibility for making the auditor aware of all identified and possible legal claims against the auditee,rests with _____.

Accepted Answer

A) the auditee's Board of Directors 
B) the client's lawyers 
C) the auditor's lawyers 
D) the client's management 
A) the auditee's Board of Directors 
B) the client's lawyers 
C) the auditor's lawyers 
D) the client's management

Question 13

All revenue accounts designated "miscellaneous" or "other" are generally immaterial in amount and,therefore,not audited.

Accepted Answer

A) True 
 B)False

Engagement quality reviews are automatically required for which type of audit client?

Settlement of litigation when the event giving rise to the claim took place after the balance sheet date requires financial statement disclosure only.

The primary purpose of the second partner review is to help in forming the audit opinion.

The primary reason an auditor asks that enquiry letters be sent to a client's lawyers is to provide the auditor with ________.

Which of the following can illustrate a subsequent event that requires disclosure but not adjustment?

For audit purposes,subsequent events are defined as events that occur ________.

The primary source of information that the auditor can use in corroborating information about litigation,claims,and assessments is the ________.

Which of the following items would appear in a management letter of representation?

What are the auditors' responsibilities regarding subsequent events?

A working paper reference index reflects ________.

A subsequent event involving the issue of bonds payable or share capital requires ________.

Primary responsibility for making the auditor aware of all identified and possible legal claims against the auditee,rests with _____.

All revenue accounts designated "miscellaneous" or "other" are generally immaterial in amount and,therefore,not audited.

Introduction to Auditing

Auditors Professional Roles and Responsibilities

Auditors Ethical and Legal Responsibilities

Reports on Audited Financial Statements

Preliminary Audit Planning: Understanding the Auditees Business

Assessing Risks in an Audit Engagement

Internal Control Over Financial Reporting

Audit Evidence and Assurance

Control Assessment and Testing

Audit Sampling

The Revenues, receivables, and Receipts Process and Cash Account Balance

The Purchases, payables, and Payments Process

Payroll and Production Processes

The Finance and Investment Process

Applying Professional Judgment to Form the Audit Opinion and Issue the Audit Report

Other Public Accounting Services and Reportsreviews and Compilations

Professional Rules of Conduct Details and Auditor Responsibilities

The Audit of Accounting Estimates: Basic Material Relating to Accounting Estimates

Legal Liability Cases

Other Professional Accounting Services and Reports, including Fraud Auditing

Filters

Exam 15: Completing the Audit Work

Engagement quality reviews are automatically required for which type of audit client?

Settlement of litigation when the event giving rise to the claim took place after the balance sheet date requires financial statement disclosure only.

The primary purpose of the second partner review is to help in forming the audit opinion.

The primary reason an auditor asks that enquiry letters be sent to a client's lawyers is to provide the auditor with ________.

Which of the following can illustrate a subsequent event that requires disclosure but not adjustment?

For audit purposes,subsequent events are defined as events that occur ________.

The primary source of information that the auditor can use in corroborating information about litigation,claims,and assessments is the ________.

Which of the following items would appear in a management letter of representation?

What are the auditors' responsibilities regarding subsequent events?

A working paper reference index reflects ________.

A subsequent event involving the issue of bonds payable or share capital requires ________.

Primary responsibility for making the auditor aware of all identified and possible legal claims against the auditee,rests with _____.

All revenue accounts designated "miscellaneous" or "other" are generally immaterial in amount and,therefore,not audited.

Introduction to Auditing

Auditors Professional Roles and Responsibilities

Auditors Ethical and Legal Responsibilities

Reports on Audited Financial Statements

Preliminary Audit Planning: Understanding the Auditees Business

Assessing Risks in an Audit Engagement

Internal Control Over Financial Reporting

Audit Evidence and Assurance

Control Assessment and Testing

Audit Sampling

The Revenues, receivables, and Receipts Process and Cash Account Balance

The Purchases, payables, and Payments Process

Payroll and Production Processes

The Finance and Investment Process

Applying Professional Judgment to Form the Audit Opinion and Issue the Audit Report

Other Public Accounting Services and Reportsreviews and Compilations

Professional Rules of Conduct Details and Auditor Responsibilities

The Audit of Accounting Estimates: Basic Material Relating to Accounting Estimates

Legal Liability Cases

Other Professional Accounting Services and Reports, including Fraud Auditing

Filters