Questions from Auditing and Assurance

Q: Hall accepted an engagement to audit the year 1 financial statements of

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 its auditors began the...

Q: 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? a. Examining legal invoices sent by the client’s attorney. b. Verifying attorney–client privilege...

Q: Which of the following substantive procedures should auditors ordinarily perform regarding subsequent

Which of the following substantive procedures should auditors ordinarily perform regarding subsequent events? a. Compare the latest available interim financial statements with the financial statements...

Q: Which of the following substantive procedures would auditors most likely perform to

Which of the following substantive procedures would auditors most likely perform to obtain evidence about the occurrence of subsequent events? a. Recompute a sample of large-dollar transactions occurr...

Q: The primary reason auditors request responses to attorney letters is to provide

The primary reason auditors request responses to attorney letters is to provide auditors a. The probable outcome of asserted claims and pending or threatened litigation. b. Corroboration of the inform...

Q: Which of these substantive procedures is not used to obtain evidence about

Which of these substantive procedures is not used to obtain evidence about contingencies? a. Scanning expense accounts for credit entries. b. Obtaining a letter from the client’s attorney. c. Reading...

Q: The scope of an audit is not restricted when an attorney letter

The scope of an audit is not restricted when an attorney letter limits the response to a. Matters to which the attorney has given substantive attention in the form of legal representation. b. An evalu...

Q: Hart, an assistant accountant with the firm of Better & Best

Hart, an assistant accountant with the firm of Better & Best, CPAs, is auditing the financial statements of Tech Consolidated Industries Inc. The firm’s audit plan calls for the preparation of written...

Q: During the audit of the annual financial statements of Amis Manufacturing Inc

During the audit of the annual financial statements of Amis Manufacturing Inc., the company’s president, Vance Molar, and Wanda Dweebins, the engagement partner, reviewed matters that were supposed to...

Q: Each of the following statements is a communication from management. Indicate

Each of the following statements is a communication from management. Indicate whether the inclusion of each statement in written representations is appropriate. Provide your rationale for any statemen...