"which of the following statements is most likely to be included in an attorney letter?:

What is an auditor's primary method to corroborate information on litigation?

What is an auditor's primary method to corroborate information on litigation, claims, and assessments? 1. Examining legal invoices sent by the client's attorney. 2. Verifying attorney-client privilege through interviews. 3. Reviewing the response from the client's lawyer to a letter of audit inquiry. 4.

What are the factors to consider in determining a lawsuit?

1. The probable outcome of asserted claims and pending or threatened litigation. 2. Corroboration of the information furnished by management about litigation, claims, and assessments. 3. The attorney's opinions of the client's historical experiences in recent similar litigation. 4.

What is an auditor required to establish in writing with clients?

An auditor is required to establish an understanding in writing with a client regarding the services to be performed for each engagement. This understanding generally includes: A. Management's responsibility for errors and the illegal activities of employees that may cause material misstatement. B.

Who generally writes the management letter?

- Management letter. Which of these persons generally does participate in writing the management letter? - Public accounting firm's consulting and tax experts. - Public accounting firm's audit team on the engagement. - Client's accounting and production managers.

What is the role of correct auditor?

What is correct performing analytical procedures near the end of the audit?

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Which of the following items are likely to be included in a management representation letter to the auditor?

Contents of a Management Representation Letter All financial records have been made available to the auditors. All board of directors minutes are complete. Management has made available all letters from regulatory agencies regarding financial reporting noncompliance. There are no unrecorded transactions.

Which of the following is the auditor's primary means of obtaining corroboration of information furnished by management concerning litigation claims and assessments?

A letter of audit inquiry to a client's lawyer is often the auditor's primary means of obtaining corroboration of information furnished by management concerning litigation, claims, and assessments.

What is the primary purpose of obtaining written representations?

Written representation – A written statement by management provided to the auditor to confirm certain matters or to support other audit evidence.

Which of the following statements would an auditor most likely require management to indicate in a written representation letter obtained for an audit?

Which of the following statements would an auditor most likely require management to indicate in a written representation letter obtained for an audit? Management acknowledges its responsibilities for the design and implementation of programs and controls to detect fraud.

Which of the following is the auditor's primary means of obtaining corroboration of information?

. 08 A letter of audit inquiry to the client's lawyer is the auditor's primary means of obtaining corroboration of the information furnished by management concerning litigation, claims, and assessments.

Which auditing procedure would an auditor most likely perform when obtaining evidence about an entity's subsequent events?

Which of the following procedures will an auditor most likely perform to obtain evidence about the occurrence of subsequent events? Inquiring of the entity's legal counsel concerning litigation, claims, and assessments arising after year end.

What is the main purpose of a written representation letter quizlet?

A management representation letter is obtained by the auditor to reduce the possibility of a misunderstanding concerning management's responsibility for the financial statements and to document the representations made by management during the course of the audit.

Which of the following matters is most likely to be included in a management representation letter?

Which of the following matters will an auditor most likely include in a management representation letter? Management's acknowledgment of its responsibility to detect employee fraud.

What is the primary purpose of obtaining written representations quizlet?

The three primary purposes for obtaining written representations from management are: (1). to confirm representations explicitly or implicitly given to the auditor. (2). to indicate and document the continuing appropriateness of such representations.

Which of the following factors would an auditor most likely consider in evaluating the control environment for an audit client?

Risk assessment. Which of the following would an auditor most likely consider in evaluating the control environment of an audit client? Management's operating style.

When auditing a private company the auditor should obtain an understanding of internal control sufficient to?

internal control,3 the auditor should obtain an understanding of the internal audit function sufficient to identify those internal audit activities that are rel- evant to planning the audit. The extent of the procedures necessary to obtain this understanding will vary, depending on the nature of those activities.

Which of the following factors is most important in determining the competence of audit evidence?

The independence of the source of evidence.

Which of the following is the auditor's primary means of obtaining?

Answer and Explanation: The auditor's primary means of obtaining corroboration of management's information concerning litigation is a (a) Letter of audit inquiry to the client's lawyer. A letter of inquiry helps an independent auditor verify the information furnished by the management regarding legal matters.

What is the primary objective of analytical procedures performed during the planning stages of an audit?

The purpose of applying analytical procedures in planning the audit is to assist in planning the nature, timing, and extent of auditing procedures that will be used to obtain evidential matter for specific account balances or classes of transactions.

Which of the following items should an auditor communicate to those charged with governance in a publicly traded company?

Which of the following items should an auditor communicate to those charged with governance in a publicly traded company? Significant unusual transactions, critical estimates, and management's consultation with other accountants about significant accounting matters.

Which of the following matters is most likely to be included in a management representation letter?

Which of the following matters will an auditor most likely include in a management representation letter? Management's acknowledgment of its responsibility to detect employee fraud.

Audit Chapter 11 Flashcards & Practice Test | Quizlet

A. Griffin audited the financial statements of Dodger Magnificat Corporation for the year ended December 31, 2014. 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.

Auditing Ch. 11 MCQ Flashcards | Quizlet

11.42 Ambrose is auditing the financial statements of Mays (dated December 31, 2014). The date of the auditor's report is February 17, 2015, and the audit report release date is February 20, 2015.

Flashcards - Auditing Chapter 11 MC - FreezingBlue

Auditing Chapter 11 MC - Auditing Chapter 11 - Completing the Audit MC. A Type 1 subsequent event involves subsequent information about a condition that existed at the balance sheet date.

What information does an attorney letter ask for?

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

What is the meaning of the letter "Certain representations in this letter are described as being limited to?

A. "Certain representations in this letter are described as being limited to matters that are material."

What would result in either a qualified opinion or a disclaimer of opinion?

A. The failure of management to furnish representations would result in either a qualified opinion or a disclaimer of opinion

Is reponsibility explicity included in the management representations?

A. This reponsibility is explicity included in the management representations

Who would not ordinarily participate in drafting the management letter?

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

Can an attorney inform auditors of unasserted claims?

While this statement is related to communication with attorneys, it would not be appropriate for the attorney to directly inform auditors of omitted unasserted claims or assessments

What does a CPA firm do?

A. The CPA firm will provide absolute assurance about whether the financial statements are free of material misstatement.

What is disclaimer of opinion?

A. Issuance of a disclaimer of opinion as a result of inability to conduct certain tests required by generally accepted auditing standards due to the timing of the acceptance of the engagement.

What is an auditor?

An auditor is required to establish an understanding in writing with a client regarding the services to be performed for each engagement. This understanding generally includes: A. Management's responsibility for errors and the illegal activities of employees that may cause material misstatement. B.

What is the role of correct auditor?

Correct Auditors are responsible for ensuring that management properly discloses all information related to subsequent events that are known prior to the audit report release date.

What is correct performing analytical procedures near the end of the audit?

Correct Performing analytical procedures near the end of the audit provides the auditors an overall review of the financial statements and allows auditors to assess the adequacy of evidence gathered during the audit.