WorksheetsCh10 - Completing the Audit
Total questions: 10
Worksheet time: 6mins
Name
Class
Date
1.
An auditor has the responsibility to actively search for subsequent events that occur subsequent to the:
a)
Balance sheet date
b)
Date of the auditor’s report
c)
Balance sheet date, but prior to the audit report
d)
Date of the management representation
2.
An auditor completed fieldwork on February 10, 2022 for a December 31, 2021 year-end client. A significant subsequent event occurred on February 22, 2022. In this case, which of the following report dates would not be appropriate?
a)
February 10, 2022
b)
February 10, except Note 1, February 22, 2022
c)
February 22, 2022
d)
December 31, 2021
3.
When obtaining evidence regarding litigation against a client, the CPA would be least interested in determining
a)
An estimate of when the matter will be resolved
b)
The period in which the underlying cause of the litigation occurred
c)
The probability of an unfavorable outcome
d)
An estimate of the potential loss
4.
If a potential loss on a contingent liability is remote, the liability usually is:
a)
Disclosed in the notes, but not accrued.
b)
Neither accrued nor disclosed in notes.
c)
Accrued and indicated in the body of the financial statements.
d)
Disclosed in the auditor’s report but not disclosed on the financial statements.
5.
At the completion of the audit, management is asked to make a written statement that it is not aware of any undisclosed contingent liabilities. This statement would appear in the:
a)
Management letter
b)
Letter of inquiry
c)
Letters testamentary
d)
Written management representation
6.
A representation letter issued by a client
a)
Is essential for the preparation of the audit program.
b)
Is a substitute for testing.
c)
Does not reduce the auditor's responsibility.
d)
Reduces the auditor's responsibility only to the extent that it is relied upon.
7.
The date of the management representation letter should coincide with the date of the
a)
Balance sheet
b)
Latest interim financial statements
c)
Auditor's report
d)
Latest related party transaction
8.
The purpose of analytical procedures at the completion of the audit includes all of the following except
a)
Revising the audit plan
b)
Considering overall reasonableness of the financial statements
c)
Reviewing adequacy of evidence gathered to investigate unusual fluctuations
d)
Recalculating some of the ratios examined during audit planning
9.
Which of the following auditing procedures is ordinarily performed last?
a)
Reading minutes of the board of directors' meetings
b)
Confirming accounts payable
c)
Obtaining a client representation letter
d)
Testing the purchasing function
10.
Which oft the following may not cast significant doubt about the going concern assumption concern assumption of an entity?
a)
The entity heavily used long-term capital in financing its investments in permanent assets.
b)
The entity fails to meet capital and other statutory requirements
c)
There is a pending legal or regulatory proceeding against the entity that may, if successful, result in claims that are unlikely to be satisfied
d)
There was a change in legislation or government policy expected to adversely affect the entity
100 %
