Exam 24: Audit Completion

Auditors will generally send a standard inquiry letter to:

When should auditors generally assess a client's ability to continue as a going concern?

Which event that occurred after the end of the fiscal year under audit but prior to issuance of the auditor's report would not require disclosure in the financial statements?

Subsequent events affecting the realization of assets ordinarily will require adjustments of the financial statements under examination because such events typically represent:

Contingent liability disclosure in the footnotes of the financial statements would normally be made when:

When communicating with the audit committee and management:

Which of the following is not considered a commitment?

After an auditor has issued an audit report on a nonpublic entity,there is no obligation to make any further audit tests or inquiries with respect to the audited financial statements covered by that report unless:

Which of the following statements is correct?

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

A lawsuit has been filed against your client.If,in the opinion of legal counsel,the likelihood your client will lose the lawsuit is remote,no financial statement accrual or disclosure of the potential loss would generally be required.

If the auditor concludes that there are contingent liabilities,he or she must evaluate the significance of the potential liability and the nature of the disclosure needed in the financial statements.Which of the following statements is not true?

Which of the following is not a common audit procedure used to search for contingent liabilities?

Which type of subsequent event requires consideration by management and evaluation by the auditor?

List four specific matters that should be included in a client representation letter.

Management furnishes the independent auditor with information concerning litigation,claims,and assessments.Which of the following is the auditor's primary means of initiating action to corroborate such information?

What are the three required conditions for a contingent liability to exist?

Results from the final analytical procedures may indicate that additional audit evidence is necessary.

The standard letter of inquiry to the client's legal counsel should be prepared on:

A commitment is best described as: