ACCT 431 Ch 11 Completing the audit

Interim testing

normally occurs between the ____ and the ____.

• Beginning of the year under audit; audit report release date.

• Date of the financial statements; audit report release date.

• Beginning of the year under audit; date of the financial statements.

• End of the year under audit; date of the auditors’ report.

Roll-forward

work normally occurs between the ____ and the ____.

• Beginning of the year under audit; audit report release date.

• Date of the financial statements; audit report release date.

• Beginning of the year under audit; date of the financial statements.

• Date of interim work; date of the auditors’ report.

Which of the following best describes the auditors’ responsibility with respect to management’s estimates?

• Verifying the mathematical accuracy of management estimates.

• Assessing the likelihood that actual results will be consistent with management’s estimates.

• Evaluating the reasonableness of management’s estimates.

• Identifying how the failure of the entity to achieve management’s estimates will influence users’ decisions.

Which of the

following is typically not

included in the inquiry letter sent to the client's attorneys?

• A disclaimer regarding the likelihood of settlement of pending litigation.

• A listing of pending or threatened litigation, claims, or assessments.

• An evaluation of the likelihood of an unfavorable outcome.

• An estimate of the range of potential loss.

Which party

should request a letter regarding litigation, claims, and assessments from

the client's attorney?

• Attorney.

• Auditors.

• Client.

• Securities and Exchange Commission or other regulatory body.

To whom should written

representations be addressed?

• Auditors.

• Board of directors.

• Client.

• Stockholders.

If auditors are

appointed on January 3, 2017, the date of the financial statements is

December 31, 2017, the date of the auditors’ report is February 7, 2018

and the audit report release date is March 3, 2018, what is the

appropriate date of the written representations?

• January 3, 2017.

• December 31, 2017.

• February 7, 2018.

• March 3, 2018.

Which of the

following reporting options is available if the client refuses to provide auditors

with written representations?

• Unmodified or qualified opinion.

• Qualified or adverse opinion.

• Qualified opinion or disclaimer of opinion.

• Disclaimer of opinion or adverse opinion.

Auditors must

complete various phases of an audit after the date of the financial

statements. The auditors’ responsibility for matters affecting the client extends

from the date of the financial statements to the

• Date of the auditors’ report.

• Final review of the audit documentation.

• Audit report release date.

• Delivery of the auditors’ reports to the client.

If

an entity had litigation

pending at the date of the financial statements and auditors learn of the

outcome of this litigation following the date of their report (but prior

to the audit report release date), this is known as a(n):

• Omitted procedure.

• Prior period adjustment.

• Subsequent event.

• Subsequently discovered fact.