Audit Ch 17

An auditor would be most likely to identify a contingent liability by obtaining a(n)

Letter from the entity's general legal counsel.

An auditor should request that an audited entity send a letter of inquiry to those attorneys who have been consulted concerning litigation, claims, or assessments. The primary reason for this request is to provide

Corroboration of the information furnished by management concerning litigation, claims, and assessments.

An auditor issued an audit report that was dual dated for a subsequent event occurring after the date on which the auditor has obtained sufficient appropriate audit evidence but before issuance of the financial statements. The auditor's responsibility for

Limited to the specific event referenced

Which of the following procedures would an auditor most likely perform to obtain evidence about the occurrence of any changes in internal control that might affect financial reporting between the end of the reporting period and the date of the auditor's r

Examine relevant internal audit reports issued during the subsequent period.

Final analytical procedures are generally intended to

Provide the auditor with a final, overall evaluation of the relationships among financial statement balances.

Which of the following audit procedures is most likely to assist an auditor in identifying conditions and events that may indicate substantial doubt about an entity's ability to continue as a going concern?

Review compliance with the terms of debt agreements.

Auditing standards primarily encourage which of the following conversations between the auditor and another party about financial reporting?

A conversation with those charged with governance to discuss matters pertaining to financial reporting.

Which of the following matters should an auditor communicate to those charged with governance?

Significant Audit Adjustments, AND Management's Consultations with Other Accountants

Which of the following events occurring after the issuance of a set of financial statements and the accompanying auditor's report would be most likely to cause the auditor to make further inquiries about the financial statements?

The discovery of information regarding a contingency that existed before the financial statements were issued.

Analytical procedures performed at the overall review stage of an audit appear to indicate that several accounts have unexpected balances and/or relationships. The result of
these procedures most likely would indicate that

Additional detail tests of account balances are necessary

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?

Usual trade credit from suppliers is denied.

Communications between the auditor and those charged with governance should
include all of the following except:

a summary of specific audit procedures used.

On March 15, 2019 (prior to issuance of Financial Statements), you discovered that on February 16, 2019, a flood destroyed the entire uninsured inventory in one of Pumpkin's warehouses. What would you do?

Add a disclosure about the event and dual date the report. But, if change audit date, needs to say that subsequent event procedures changed to include additional time for actively
seeking items.

On January 16, 2019, a lawsuit was filed against Baby Corp by Puppy Co. for a patent infringement action that allegedly took place in early 2009. In the opinion of Baby Corp's
attorneys, there is a reasonable (but not probable) danger of a significant los

Disclose the information in a footnote in the December 31, 2018 financial statements