Intermediate Staff - TungNP - D6 - 23May23

What are the characteristics of a good Management Letter Comment?

Choose all that apply:

• A. Be concise and specific.

• B. Be aware of the audience for our letter.

• C. Indicate when a point is being repeated from the prior year.

• D. A&C

• E. A,B&C

What is the purpose of quarterly meetings between the accounting group and the in-house counsel of SunnEY Secured Storage?

• A. Summary and evaluate all pending litigation and determine whether a reasonable likelihood exists that such a matter would result in an outflow of resources.

• B. Evaluate pending litigation on any material case which is larger than threshold to determine if any items could potentially impact the financial statements.

• C. Discuss about related parties list and transactions to assess whether a party is related party of the company, to ensure the completeness of financial statement disclosure.

Which threshold amount did the accounting group use to determine if

pending litigation should be recorded in the financial statements?

• A. 2,500

• B. 3,500

• C. 4,500

• D. 4,100

Which table is applied in determine sample size?

• A. Table 1

• B. Table 2

• C. Table 3

In Mission 12, which company did we perform audit its financial statement?

• A. Bee ever young.

• B. Door to Door Tropical Delivery.

• C. Tropical Tees.

• D. SunnEY Secured Storage.

Event that the Client change its CEO does not affect on our audit procedure. [True/False]

• A. True

• B. False

How can we ensure the completeness of meeting minutes of the meeting of share holder, BOM, BOD or other relevants?

• A. Check the sequence numbers of pages/paragraphs from one meeting to the next.

• B. Check the formal approval of the minutes of the previous meeting at the next meeting.

• C. Obtain a certification from the corporate secretary, or its equivalent, as to the completeness of the minutes.

• D. Obtain representation letters.

• E. All of them.

We do not need to read and review BOD meeting minutes if we can directly inquire those charged with governance or the management.

[TRUE/FALSE]

• A. TRUE

• B. FALSE

Now, which is the change in the financial statement mentioned in Mission 13?

• A. Cut-off revenue.

• B. Contigent liability.

• C. Change in depreciation expense.

• D. Change in the list of management.

Which phase we must perform the financial statement tie-out procedures?

• A. Scope & Strategy.

• B. Execution.

• C. Wrap-up.

• D. Subsequent event.