Completion of audit

Front

Which of the following conditions or events most likely would cause an auditor to have substantial doubt about an entity's ability to continue as a going concern? Cash flows from operating activities are negative, Stock dividends replace annual cash dividends, Significant related party transactions are pervasive, Research and Development projects are postponed

Back

Cash flows from operating activities are negative

Front

The following statements are ordinarily included in a management representation letter, except:
The completeness and availability of minutes of stockholders' and directors' meetings.
There have been no irregularities involving management or employees who have a significant role in internal control or that could have a material effect on the financial statements.
The financial statements are free of material misstatements, including omissions.

Back

Sufficient appropriate audit evidence has been made available to permit the expression of an unqualified opinion.

Front

An auditor is concerned with completing various phases of the audit after the balance sheet date. This subsequent period extends to the date of the

Back

Auditor's report

Front

The primary source of information to be reported about litigation, claims, and assessments is the

Back

Client's management.

Front

The written representations shall be in the form of a representation letter addressed to the

Back

Auditor.

Front

Analytical procedures used in the overall review stage of the audit generally include: Retesting controls that appeared to be ineffective during the assessment of control risk, Considering unusual or unexpected account balances that were not previously identified, Gathering evidence concerning account balances that have not changed from the prior year, Performing tests of transactions to corroborate management's financial statement assertions.

Back

Considering unusual or unexpected account balances that were not previously identified.

Front

Analytical procedures performed in the overall review stage of an audit suggest that several accounts have unexpected relationships. The results of these procedures most likely indicate that

Back

Additional substantive tests of details are required

Front

The responsibility for the identification and disclosure of related parties and transactions with such parties rests with the: Auditor, Entity's management, Financial Reporting Standards Council (FRSC), Securities and Exchange Commission (SEC).

Back

Entity's management

Front

The date of the written representation shall be

Back

As near as practicable to, but not after the date of the auditor's report on the financial statements.

Front

A written representation from a client's management that, among other matters, acknowledges responsibility for the fair presentation of financial statements, should normally be signed by the

Back

Chief executive officer and the chief financial officer.