Exam 24: Completing the Audit

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An example of the use of data analytics at the end of the audit is using software to scan unusual journal entries that may require additional consideration by the auditor of their potential impact on the year-end financial statements.

(True/False)

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Question 121

An example of a nonrecognized subsequent event which may require disclosure if it is significant is the issuance of bonds or equity securities by a company.

(True/False)

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Question 122

The auditor is responsible for communicating significant internal control deficiencies to the audit committee, or those charged with governance. This communication

(Multiple Choice)

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Question 123

When using the probability threshold for contingencies, the likelihood of the occurrence of the event is classified as

(Multiple Choice)

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Question 124

Which of the following statements is correct?

(Multiple Choice)

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Question 125

The auditor has completed her or his assessment of subsequent events. The proper accounting for subsequent events that have a direct effect on the financial statements is to

(Multiple Choice)

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Question 126

Which of the following is correct regarding supplementary information?

(Multiple Choice)

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Question 127

With what types of contingencies might an auditor be concerned?

(Essay)

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Question 128

Which of the following is an accurate statement regarding presentation and disclosure?

(Multiple Choice)

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Question 129

Companies ordinarily describe all commitments either in a separate footnote or combine them with a footnote related to contingencies.

(True/False)

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Question 130

When preparing a standard inquiry to the client's attorney letter, the client's letterhead should be used, and the letter should be signed by the client company's officials.

(True/False)

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Question 131

The Financial Accounting Standards Board (FASB) describes a reasonable period of time as two years after the date the financial statements are issued for management to evaluate the entity's ability to continue as a going concern.

(True/False)

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Question 132

The American Bar Association has refused to amend its attorney-client confidentiality rules to permit attorneys to breach confidentiality if a client is committing a crime or fraud.

(True/False)

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Question 133

When reviewing the summary of misstatements found in the audit,

(Multiple Choice)

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Question 134

Current professional auditing standards make it clear that management, not the auditor, is responsible for identifying and deciding the appropriate accounting treatment for contingent liabilities.

(True/False)

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Question 135

State the three purposes of the management representation letter.

(Essay)

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Question 136

Besides the search for contingent liabilities and the review for subsequent events, the auditor has five important final evidence accumulation responsibilities, all of which are required by current professional auditing standards. Discuss each of these four responsibilities.

(Essay)

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(69)

Question 137

When subsequent events are used to evaluate the amounts included in the year-end financial statements, auditors must distinguish between conditions that existed at the balance sheet date and those that came into being after the balance sheet date.

(True/False)

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(75)

Question 138

The first stop in the audit of contingencies is to determine the amount of the contingency.

(True/False)

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Question 139

While there is no professional requirement to do so on audit engagements, CPAs frequently issue a formal "management" letter to clients. The primary purpose of this letter is to provide

(Multiple Choice)

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Question 140

Showing 121 - 140 of 155

Exam 24: Completing the Audit

An example of the use of data analytics at the end of the audit is using software to scan unusual journal entries that may require additional consideration by the auditor of their potential impact on the year-end financial statements.

An example of a nonrecognized subsequent event which may require disclosure if it is significant is the issuance of bonds or equity securities by a company.

The auditor is responsible for communicating significant internal control deficiencies to the audit committee, or those charged with governance. This communication

When using the probability threshold for contingencies, the likelihood of the occurrence of the event is classified as

Which of the following statements is correct?

The auditor has completed her or his assessment of subsequent events. The proper accounting for subsequent events that have a direct effect on the financial statements is to

Which of the following is correct regarding supplementary information?

With what types of contingencies might an auditor be concerned?

Which of the following is an accurate statement regarding presentation and disclosure?

Companies ordinarily describe all commitments either in a separate footnote or combine them with a footnote related to contingencies.

When preparing a standard inquiry to the client's attorney letter, the client's letterhead should be used, and the letter should be signed by the client company's officials.

The Financial Accounting Standards Board (FASB) describes a reasonable period of time as two years after the date the financial statements are issued for management to evaluate the entity's ability to continue as a going concern.

The American Bar Association has refused to amend its attorney-client confidentiality rules to permit attorneys to breach confidentiality if a client is committing a crime or fraud.

When reviewing the summary of misstatements found in the audit,

Current professional auditing standards make it clear that management, not the auditor, is responsible for identifying and deciding the appropriate accounting treatment for contingent liabilities.

State the three purposes of the management representation letter.

Besides the search for contingent liabilities and the review for subsequent events, the auditor has five important final evidence accumulation responsibilities, all of which are required by current professional auditing standards. Discuss each of these four responsibilities.

When subsequent events are used to evaluate the amounts included in the year-end financial statements, auditors must distinguish between conditions that existed at the balance sheet date and those that came into being after the balance sheet date.

The first stop in the audit of contingencies is to determine the amount of the contingency.

While there is no professional requirement to do so on audit engagements, CPAs frequently issue a formal "management" letter to clients. The primary purpose of this letter is to provide

The Demand for Audit and Other Assurance Services

The CPA Profession

Audit Reports

Professional Ethics

Legal Liability

Audit Responsibilities and Objectives

Audit Evidence

Audit Planning and Materiality

Assessing the Risk of Material Misstatement

Fraud Auditing

Internal Control and Coso Framework

Assessing Control Risk and Reporting on Internal Controls

Overall Audit Strategy and Audit Program

Audit of the Sales and Collection Cycle: Tests of Controls

Audit Sampling for Tests of Controls and Substantive Tests of Transactions

Completing the Tests in the Sales and Collection Cycle: Accounts Receivable

Audit Sampling for Tests of Details of Balances

Audit of the Acquisition and Payment Cycle: Tests of Controls, Substantive Tests of Transactions, and Accounts Payable

Completing the Tests in the Acquisition and Payment Cycle: Verification of Selected Accounts

Audit of the Payroll and Personnel Cycle

Audit of the Inventory and Warehousing Cycle

Audit of the Capital Acquisition and Repayment Cycle

Audit of Cash and Financial Instruments

Other Assurance Services

Internal and Governmental Financial Auditing and Operational Auditing

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