21 terms

ch. 11 acct 441

Interest expense.
which of the following would most likely be audited in conjunction with the examination of the client's interest-bearing note payable?
Impress on management its ultimate responsibilty for the finacial statements and disclosures.
The main purpose of management representations is to
Scan expense accounts for credit entries
which of these substantive procedures sources is not used to obtain evidence about contingencies?
Settlement of litigation in February for $100,000 that had been estimated a $12,000 in the December 31 financial staements.
A Type I subsequent event involves subsequent information about a condition tha existed at the balance sheet date. Subsequent knowledge of which of the following would cause the entity to adjust its December31 financial statements?
January 30, 2011, except as to Note X, which is dated Februar 5, 2011.
A. Griffin audited the financial statements of Dodger Magnificat Corporation for the year ended December 31, 2010. She completed gathering sufficient appropriate evidence on January 30 and later learned of a stock split voted by the board of directors on February 5. The financial statements were changed to reflect the split, and she now needs to dual date the report on the company's financial statements before sending it to the company. which of the following is the proper form?
The audit report release date.
Prior to the audit report release date, auditors have a responsibility related to management's disclosure of subsequent events until
The audit report release date.
The auditing standards regarding " subsequent discovery of facts" refers to knowledge obtained after
Management Letter
Which of the following is not required by generally acceped auditng standards?
Client's outside attorneys.
Which of these persons generally does not participate in writing the management letter?
obtaining signed management representations.
which of the following is ordinarily performed last in the audit examination?
Revew of audit documentation.
which of the following normally occurs earliest in the audit examination?
Sampling and investigation of individual transaction affecting revenue and expense accounts.
which of the following procedures is least likely to be performed in conjunction with the audit of revenue and expense accounts?
" Please furnish to our auditors such explanation, if any, that you consider necessary to supplement the foregoing information."
Which of the following statements is most likely to be included in an attoney letter?
Determine whether the omitted procedue is important in supporting the auditors' opinion on the entity's financial statements.
If, after the audit report release date, auditors determine that an important auditing procedure was omitted,which of the following initial courses of action is most appropriate?
The failure of management to furnish representations is a signicant scope limitation, resulting in either an adverse opinion or disclaimer of opinion.
which of the following statements is not true with respect to management representations?
March 24, Year 2.
Hall accepted an engagement to audit the Year 1 financial statements of XYZ Company. XYZ completed the preparation of the Year 1 financial statements of February 13, year 2, and Hall began the field work on February 17, year 2. Hall completed the report on March 28, Year 2. The management representations normally would be dated
Contingent liability as become a real liability and has been settled.
A charge in the subsequent period to a notes receivable account from the cash disbursements journal should alert auditors to the possibility that a
Compare the latest available interim financial statements with the financial statements being audited
Which of the following substantive procedures should auditors ordinators ordinarily perform regarding subsequent events?
Investigate changes in sharholders' equity occurring afer year-end.
Which of the following substanative procedures would auditors most likely perform to obtain evidence about the occurrence of subsequent events?
Corroboraion of the information furnished by management about litigation, claims, and assessments.
The primary reason auditors request responses to attorney letters is to provide auditors
Matters to which the attorney has given substantive attention in the form of legal representation.
The scope of an audit is no restricted when a attorney letter limits the response to