1. Which of the following is true about subsequent events? a. They are events occurring between the.


Question Description:

25

1. Which of the following is true about subsequent events? a. They are events occurring between the. 1 answer below » 1. Which of the following is true about subsequent events? a. They are events occurring between the date of the financial statements and the date of the audit report. b. Requires the reading minutes of the meetings of the entity’s owners and management after the date of the financial statements and inquiring about matters discussed at any such meetings for which minutes are not yet available c. The auditor should perform audit procedures designed to obtain sufficient appropriate audit evidence that all subsequent events that require adjustment of, or disclosure in, the financial statements View complete question » 1. Which of the following is true about subsequent events? a. They are events occurring between the date of the financial statements and the date of the audit report. b. Requires the reading minutes of the meetings of the entity’s owners and management after the date of the financial statements and inquiring about matters discussed at any such meetings for which minutes are not yet available c. The auditor should perform audit procedures designed to obtain sufficient appropriate audit evidence that all subsequent events that require adjustment of, or disclosure in, the financial statements have been identified. d. All of the above are true 2. When performing audits on the financial information of components, the group engagement team or the component auditor should perform procedures designed to identify subsequent events a. Obtaining an understanding of any procedures that group management has established to ensure that such subsequent events are identified b. Requesting written representation from component management regarding subsequent events c. Reading the subsequent year’s capital and operating budgets d. Review cash receipts after year end 3. Factors that may affect the decision to use the work of component auditors or make reference to their audit include all of the following except: a. Differences in the FRF of the component financial statements vs. the financial reporting framework of the group financial statements b. Differences in the auditing and other standards applied by the component auditor and those applied in the audit of the group financial statements c. Whether the audit of the financial statements of the component will be completed in time to meet the group reporting timetable d. All of the above are factors affecting the decision 4. A scope limitation of the audit may arise from all of the following except: a. Circumstances beyond the control of the entity b. Circumstances relating to the nature or timing of the auditor’s work c. Lack of understanding of a new FASB pronouncement d. Limitations imposed by management 5. If management refuses to remove a client imposed scope limitation, the auditor should do all of the following except: a. Communicate the matter to those charged with governance b. Determine whether it is possible to perform alternative procedures to obtain sufficient appropriate audit evidence c. Reduce the engagement to a review or compilation d. Withdraw from the engagement View less » Jul 29 2015 02:51 PM

Answer

25