23.) Which of the following procedures most likely would assist an auditor to identify litigation,claims, and assessments?d.) Read the file of correspondence from taxing authorities.24.) What is an auditor’s primary method to corroborate information on litigation, claims, andassessments?c.)Reviewing the response from the client’s legal counsel to a letter of inquiry.25.) In auditing contingent liabilities, which of the following procedures would an auditor mostlikely perform?c.) Read the minutes of the board of directors’ meetings.26.) The appropriate date for the client to specify as the effective date in the audit inquiry to legalcounsel isd.) As close to the date of the auditor’s report as possible.27.) A company’s management provided its auditors with information concerning litigation, claims,and assessments. Which of the following is the auditor’s primary means of corroboratingmanagement’s information?a.)Inquiring of company’s outside counsel.28.) Which of the following procedures should an auditor ordinarily perform regarding subsequentevents?a.) Read the latest subsequent interim financial statements.29.) An auditor should be aware of subsequent events that provide evidence concerning conditionsthat did not exist at year end but arose after year end. These events may be important to theauditor because they mayc.) Require disclosure to keep the financial statements from beingmisleading.30.) Which of the following procedures will an auditor most likely perform to obtain evidenceabout the occurrence of subsequent events?c.) Inquiring of the entity’s legal counsel concerninglitigation, claims, and assessments arising after year end.31.) Which of the following procedures would an auditor most likely perform in obtaining evidenceabout subsequent events?d.) Investigate changes in noncurrent debt occurring after year end.32.) Wilson, CPA, obtained sufficient appropriate audit evidence on which to base the opinion onAbco’s December 31, Year 1, financial statements on March 6, Year 2, the date of the auditor’sreport. A subsequently discovered fact requiring revision of the Year 1 financial statementsoccurred on April 10, Year 2, and came to Wilson’s attention on April 24, Year 2. If the fact becameknown prior to the report release date, and the revision is made, Wilson’s report ordinarily shouldbe dated.) Using dual-dating.
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Audit Final
17-13 An auditor would be most likely to identify a contingent liability by obtaining a | C Letter from the entity's general legal counsel |
17-14 An auditor should request that an audit client send a letter of inquiry to those attorneys who have been consulted concerning litigation, claims, or assessments. The primary reason for this request is to provide | D Corroboration of the information furnished by management concerning litigation, claims, and assessments |
17-15 An auditor issued an audit report that was dual dated for a subsequent event occurring after the date on which the auditor has obtained sufficient appropriate audit evidence but before issuance of the financial statements. The auditor's responsibili | A Limited to the specific event referenced. |
17-16 Which of the following procedures would an auditor most likely perform to obtain evidence about the occurrence of any changes in internal control that might affect financial reporting between the end of the reporting period and the date of the audit | B Examine relevant internal audit reports issued during the subsequent period. |
17-17 Final analytical procedures are generally intended to | A Provide the auditor with a final, overall evaluation of the relationships among financial statement balances. |
17-18 Which of the following audit procedures is most likely to assist an auditor in identifying conditions and events that may indicate substantial doubt about an entity's ability to continue as a going concern? | A Review compliance with the terms of debt agreements. |
17-19 Auditing standards primarily encourage which of the following conversations about financial reporting? | A A conversation with those charged with governance to discuss matters pertaining to financial reporting. |
17-20 Which of the following matters should an auditor communicate to those charged with governance? | A Significant Audit Adjustments & Management's Consultations with Other Accountants |
17-21 Which of the following events occurring after the issuance of a set of financial stmts and the accompanying auditor's report would be most likely to cause the auditor to make further inquires about the financial stmts? | C The discovery of information regarding a contingency that existed before the financial statements were issued. |
18-10 In which of the following situations would an auditor ordinarily issue an unqualified financial stmt audit opinion with no explanatory paragraph? | B The auditor decides to refer to the report of another auditor as a basis, in part, for the auditor's opinion. |
18-11 | C |
18-12 | A |
18-13 | A |
18-14 | A |
18-15 | A |
18-16 | C |
18-17 | B |
18-18 | B |
18-19 | B |
18-20 | C |
18-21 | C |
18-22a | Unqualified - modified |
18-22b | Qualified |
18-22c | Adverse |
18-22d | Disclaimer - lack of knowledge or Qualified |
18-22e | Unqualified |
18-22f | Qualified |
18-22g | Unqualified - explanatory paragraph (changes in accounting principle) |
18-23a | Unqualified - Not GAAP |
18-23b | Unqualified |
18-23c | Unqualified - change in accounting principle |
18-23d | Unqualified - explanatory paragraph current year. Qualified prior year (mkt value) |
18-23e | Unqualified (change in estimate with footnote) |
18-23f | Unqualified current year. restate prior year |
18-23g | Disclaimer |
18-23h | Adverse |
19-14 | C |
19-15 | D |
19-16 | C |
19-17 | B |
19-18 | B |
19-19 | C |
19-20 | C |
19-21 | A |
19-22 | C |
19-23 | B |
19-24 | B |
19-25 | A |
19-26 | A |
21-15 | D |
21-16 | B |
21-17 | D |
21-18 | C |
21-19 | B |
21-20 | A |
21-21 | C |
21-22 | B |
21-23 | D |
21-24 | C |
21-25 | A |