ACC 409 - Chapter 14

What should an auditor do when becoming aware of violations of the FCPA?

Management’s refusal to sign the management representation letter is considered a scope limitation.

When evaluating misstatements, only need to consider misstatements in current year, and not those from the prior year.

Which one of the following subsequent events will least likely result in an adjustment to the financial statements?

Audit firms must have policies and procedures for conducting an engagement quality review for public company audits.

Which of the following individuals is most qualified to perform the concurring partner review?

Audit firm culture that emphasizes “doing the right thing” does not incorporate which to enhance audit quality?

If substantial doubt remains about going concern, then which of the following reports should the auditor issue?

If the auditor concludes that there may be a going-concern problem, which of the following should the auditor do?

Before releasing the audit report, which of the following would the auditor most likely do?

Who is responsible for designing & maintaining policies & procedures to identify, evaluate, & account for contingencies?

Auditors are required to evaluate the likelihood of client continuing as a going concern into the foreseeable future.

A disclosure checklist is a documentation format for evidence the auditor adequately evaluated the client’s disclosures.

Which of the following would be considered “the nature of a misstatement” that might make it material?

Culture that encourages consultation will more likely result in auditors who yield to inappropriate client preferences.

Which of the following is a tool that is best used to determine if the client has included all disclosures?

Analytical procedures conducted in the final review phase of the audit should corroborate previous audit conclusions.

The discovery of an intentional misstatement could impact the auditor’s opinion on the internal control effectiveness.

Which of the following individuals should sign the management representation letter?

Which of the following items does the auditor ask the client to send to its legal counsel?