Solutions for Chapter 11 Problem 43MCQ: Which of the following statements is most likely to be included in an attorney letter?a. “Certain representations in this letter are described as being limited to matters that are material.”b. “If any unasserted claims or assessments are omitted from this disclosure, please provide this information directly to our auditors.”c.
Which of the following statements is most likely to be included in an attorney letter? a. “Certain representations in this letter are described as being limited to matters that are material.” b. “If any unasserted claims or assessments are omitted from this disclosure, please pro-vide this information directly to our auditors.” c.
Apr 22, 2012 · Which of the following statements is most likely to be included in an attorney letter? A. "Certain representations in this letter are described as being limited to matters that are material." B. "If any unasserted claims or assessments are omitted from this disclosure, please provide this information directly to our auditors" C.
2. Which of the following statements is most likely to be included in an attorney letter? A. “Certain representations in this letter are described as being limited to matters that are material.” B. “Please furnish to our auditors such explanation, if any, that you consider necessary to supplement the foregoing information.” C.
Which of the following substantive procedures would auditors most likely perform to obtain evidence about the occurrence of subsequent events? Investigate changes in shareholders' equity occurring after the date of the financial statements.
The engagement letter documents and confirms the auditor's acceptance of the appointment, the objective and scope of the audit, the extent of the auditor's responsibilities to the client and the form of any reports.
Which of the following best describes the role of analytical procedures near the end of the audit engagement? To provide an overall review of the financial information and assessment of the adequacy of evidence gathered during the audit engagement.
d. Engagement letter. Management letters, while helpful, are not required under generally accepted auditing standards.
An auditor's engagement letter most likely will include: Management's acknowledgment of its responsibility for maintaining effective internal control.
An auditor's engagement letter most likely would include: management's acknowledgment of its responsibility for maintaining effective internal control. the auditor's preliminary assessment of the risk factors relating to misstatements arising from fraudulent financial reporting.
Which of the following is an analytical procedure that an auditor most likely would perform during the final review stage of an audit? Reading the financial statements and considering whether there are any unusual or unexpected balances that were not previously identified.
Which of the following is an analytical procedure that should be applied to the income statement? Compare the actual revenues and expenses with the corresponding figures of the previous year and investigate significant differences. Select sales and expense items and trace amounts to related supporting documents.
Analytical procedures are the evaluation of financial information through analysis of plausible relationships among both financial and nonfinancial data.
It is usually issued by the certified public accountant authoritative body in the region where the standards apply, such as the American Institute of Certified Public Accountants in the United States.
What is the meaning of the auditing standards that requires the auditor be independent? The auditor must be without bias with respect to the client under audit.
Standards of field work. The AICPA's prior generally accepted auditing standards (GAAS) included three categories: General Standards, Standards of Field Work, and the Standards of Reporting.