The Scope Of An Audit Is Not Considered To Be Restricted When An Attorney Limits The Response To A Letter Of Inquiry About Litigation, Claims, And Assessments To Matters To Which The Attorney Has Given Substantive Attention In The Form Of Legal Representation.
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Study with Quizlet and memorize flashcards containing terms like 1. 11.31 Which of the following best describes the role of analytical procedures near the end of the audit engagement? a. To identify possible deficiencies in the client's internal control over financial reporting. b. To identify accounts that appear to be misstated with the intention of planning the nature, timing, and extent of ...
Study with Quizlet and memorize flashcards terms like Which of the following best describes the role of analytical procedures near the end of the audit engagement? A. to identify possible deficiencies in the client's internal control over financial reporting B. to identify accounts that appear to be misstated with the intention of planning the nature, timing and extent of other substantive ...
12. When an auditor concludes that there is substantial doubt about a continuing audit client's ability to continue as a going concern for a reasonable period of time, the auditor's responsibility is to A. Consider the adequacy of disclosure about the client s possible inability to continue as a going concern. B. Issue a qualified or adverse opinion, depending upon materiality, due to the ...
During the course of the audit, the audit team noticed that Nance Corporation showed signs of financial distress. In particular, Nance Corporation was at risk for defaulting on several key loans and had therefore begun the process of restructuring their debt. This, among other indicators, led the audit team to have substantial doubt regarding Nance ...
J. Griffith audited the financial statements of Mets Magnificat Corporation for the year ended December 31, 2020. She completed gathering sufficient appropriate evidence on January 30 and later learned of a stock split voted by the board of directors on February 5. The financial statements were changed to reflect the split, and she now needs to dual date the report on the entity's financial statements. Which of the following is the proper form?
A. "Certain representations in this letter are described as being limited to matters that are material."
D. The client's attorney would not ordinarily participate in drafting the management letter, as this letter is concerned with helpful suggestions to increase the effectiveness and efficiency of the client's operations
A. The failure of management to furnish representations would result in either a qualified opinion or a disclaimer of opinion
A. The failure of management to furnish representations is a significant scope limitation, resulting in either an adverse opinion or disclaimer of opinion
C. The attorney's opinions of the client's historical experiences in recent similar litigation
Hall accepted an engagement to audit the Year 1 financial statements of XYZ Company. XYZ completed the preparation of the Year 1 financial statements on February 13, Year 2, and Hall began the field work on February 17, Year 2. Hall completed gathering sufficient appropriate evidence on March 24, Year 2, and completed the report on March 28, Year 2. The management represenations normally would be dated
a. While the attorney letter will ask for corroboration of management's information regarding the probable outcome of litigation, cliams, and assessments, management is the primary source of this information
During the course of the audit, the audit team noticed that Nance Corporation showed signs of financial distress. In particular, Nance Corporation was at risk for defaulting on several key loans and had therefore begun the process of restructuring their debt. This, among other indicators, led the audit team to have substantial doubt regarding Nance ...
J. Griffith audited the financial statements of Mets Magnificat Corporation for the year ended December 31, 2020. She completed gathering sufficient appropriate evidence on January 30 and later learned of a stock split voted by the board of directors on February 5. The financial statements were changed to reflect the split, and she now needs to dual date the report on the entity's financial statements. Which of the following is the proper form?