Which of the following procedures should an auditor perform concerning litigation, claims, and assessments? Obtain a list from management that discloses all unasserted claims that it considers to be probable of assertion.
Audit inquiry letter to legal counsel
. Jurisdiction in which the matter will be resolved.
Which of the following auditing procedures most likely would assist an auditor in identifying conditions and events that may indicate substantial doubt about an entity’s ability to continue as a going concern?
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 management’s plans to dispose of assets.
Which of the following procedures most likely would assist an auditor to identify litigation claims and assessments?
Answer (A) is correct. Which of the following procedures most likely would assist an auditor to identify litigation, claims, and assessments? Read
the file of correspondence from taxing authorities
.
Which of the following procedures would an auditor most likely perform to obtain evidence about the occurrence of subsequent events?
Option (c) is the correct answer.
An auditor most likely inquires about
the entity’s legal counsel concerning litigation, claims, and assessments arising after year-end
because it may arise after year-end but before issuance of financial statements for the period.
Choice “c” is correct.
Reviewing the minutes of the meetings of the board of directors and its committees
most likely would assist an auditor in identifying related party transactions.
Which of the following procedures would an auditor most likely perform?
Explanation: Auditor most likely perform the procedure in searching for unrecorded liabilities is
vouch a sample of cash
…
What is an auditor’s primary method to corroborate information on litigation claims and assessments?
An attorney’s letter
is the primary method used to corroborate information on litigation, claims, and assessments.
Which of the following is the best reason why an auditor should consider observing a client’s distribution of regular payroll checks?
Which of the following is the best reason why the auditors should consider observing a client’s distribution of regular payroll checks?
Separation of payroll duties is less than adequate for effective internal control
. Total payroll costs are a significant part of total operating costs.
Which of the following is an advantage of having an internal control system?
Internal controls and company policies are important
to protect and safeguard assets and to protect all company data
and are designed to protect the company from fraud. … The owner must have enough knowledge of all aspects of the company and have controls in place to track all assets.
What is the purpose of a management letter?
The Management Letter is
intended to provide management and those charged with governance with valuable information regarding their organization
. Used properly, the Management Letter can be a beneficial tool for assisting management or those charged with governance in fulfilling their responsibilities.
Which of the following procedures would an auditor ordinary perform during the review of subsequent events?
Which of the following procedures would an auditor ordinarily perform during the review of subsequent events?
A reading of the available minutes of meetings of stockholders, directors, or other committees for the subsequent-events period
.
Which of the following audit procedures is best for identifying unrecorded trade accounts payable?
Which of the following audit procedures is best for identifying unrecorded trade accounts payable?
Reviewing cash disbursements recorded subsequent to the balance sheet date
to determine whether the related payable applies to the prior period.
What is the primary purpose of obtaining written representations?
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 matters would an auditor most likely include in a management representations 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
.
Which of the following documents are examples of audit evidence generated by the client?
Which of the following documents are examples of audit evidence generated by the client?
Shipping documents and receiving reports
. bc: Shipping documents and receiving reports are a result of the operations of the client. As goods are shipped to customers, a shipping document is prepared by the client.
Which of the following steps should an auditor perform first to determine the existence?
Which of the following steps should an auditor perform first to determine the existence of related parties?
Inquire about the existence of related parties from management.
