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- 1. Multiple Choice
Interim testing
normally occurs between the ____ and the ____.
Beginning of the year under audit; audit report release date.
Date of the financial statements; audit report release date.
Beginning of the year under audit; date of the financial statements.
End of the year under audit; date of the auditors’ report.
- 2. Multiple Choice
Roll-forward
work normally occurs between the ____ and the ____.
Beginning of the year under audit; audit report release date.
Date of the financial statements; audit report release date.
Beginning of the year under audit; date of the financial statements.
Date of interim work; date of the auditors’ report.
- 3. Multiple Choice
Which of the following best describes the auditors’ responsibility with respect to management’s estimates?
Verifying the mathematical accuracy of management estimates.
Assessing the likelihood that actual results will be consistent with management’s estimates.
Evaluating the reasonableness of management’s estimates.
Identifying how the failure of the entity to achieve management’s estimates will influence users’ decisions.
- 4. Multiple Choice
Which of the
following is typically not
included in the inquiry letter sent to the client's attorneys?
A disclaimer regarding the likelihood of settlement of pending litigation.
A listing of pending or threatened litigation, claims, or assessments.
An evaluation of the likelihood of an unfavorable outcome.
An estimate of the range of potential loss.
- 5. Multiple Choice
Which party
should request a letter regarding litigation, claims, and assessments from
the client's attorney?
Attorney.
Auditors.
Client.
Securities and Exchange Commission or other regulatory body.
- 6. Multiple Choice
To whom should written
representations be addressed?
Auditors.
Board of directors.
Client.
Stockholders.
- 7. Multiple Choice
If auditors are
appointed on January 3, 2017, the date of the financial statements is
December 31, 2017, the date of the auditors’ report is February 7, 2018
and the audit report release date is March 3, 2018, what is the
appropriate date of the written representations?
January 3, 2017.
December 31, 2017.
February 7, 2018.
March 3, 2018.
- 8. Multiple Choice
Which of the
following reporting options is available if the client refuses to provide auditors
with written representations?
Unmodified or qualified opinion.
Qualified or adverse opinion.
Qualified opinion or disclaimer of opinion.
Disclaimer of opinion or adverse opinion.
- 9. Multiple Choice
Auditors must
complete various phases of an audit after the date of the financial
statements. The auditors’ responsibility for matters affecting the client extends
from the date of the financial statements to the
Date of the auditors’ report.
Final review of the audit documentation.
Audit report release date.
Delivery of the auditors’ reports to the client.
- 10. Multiple Choice
If
an entity had litigation
pending at the date of the financial statements and auditors learn of the
outcome of this litigation following the date of their report (but prior
to the audit report release date), this is known as a(n):
Omitted procedure.
Prior period adjustment.
Subsequent event.
Subsequently discovered fact.
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