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| 1 | |
Which of the following activities is ordinarily performed prior to the date of the financial statements? |
| | A) | Audit documentation review. |
| | B) | Interim testing. |
| | C) | Roll-forward work. |
| | D) | Subsequent event review. |
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| 2 | |
Procedures used to allow auditors to extend their conclusions to the end of the year under audit are referred to as: |
| | A) | Analytical procedures. |
| | B) | Interim testing. |
| | C) | Roll-forward work. |
| | D) | Tests of controls. |
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| 3 | |
Procedures used by auditors near the end of the audit to identify unusual or unexpected relationships not previously identified during the audit are referred to as: |
| | A) | Analytical procedures |
| | B) | Interim testing. |
| | C) | Roll-forward work. |
| | D) | Subsequently discovered facts. |
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| 4 | |
Which of the following procedures would typically not be performed prior to the audit report release date? |
| | A) | Conducting analytical review procedures to identify unusual and unexpected relationships. |
| | B) | Evaluating whether evidence obtained during the audit provides evidence of going-concern uncertainties. |
| | C) | Evaluating the effect of an omitted audit procedure on the auditors' ability to support a previously-expressed opinion. |
| | D) | Interim tests of controls to evaluate the operating effectiveness of the client's internal control. |
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| 5 | |
Which of the following is typically the auditors' initial procedure performed to identify litigation, claims, and assessments? |
| | A) | Perform analytical procedures. |
| | B) | Confirm litigation, claims, and assessments with third-party litigants. |
| | C) | Obtain an attorney letter from the entity's legal counsel. |
| | D) | Inquire of the entity regarding the existence of litigation, claims, and assessments. |
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| 6 | |
Which of the following information is not included in the attorney letter? |
| | A) | A listing of pending or threatened litigation, claims, or assessments. |
| | B) | A description of each item identified by management, including the nature of the case and management responses or intended responses to the case. |
| | C) | The attorney's expert opinion as to the probability of an unfavorable judgment against the entity. |
| | D) | An estimate of the range of potential loss. |
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| 7 | |
Which of the following communications is ordinarily signed by auditors? |
| | A) | Attorney letter. |
| | B) | Written representation letter. |
| | C) | Internal control deficiency letter. |
| | D) | All of the above are signed by the auditor. |
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| 8 | |
Which of the following statements is true with respect to written representations? |
| | A) | Written representations are dated as of the date of the financial statements. |
| | B) | Written representations may serve as a substitute for various types of substantive procedures. |
| | C) | Written representations are signed by auditors and delivered to the entity's officers. |
| | D) | Written representations are used to corroborate information obtained during the audit. |
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| 9 | |
Which of the following procedures would not be performed by auditors to identify subsequent events? |
| | A) | Review prior-year financial statements and disclosures. |
| | B) | Inquire of officers and other executives about various matters. |
| | C) | Read minutes of meetings of shareholders, directors, and appropriate committees. |
| | D) | Obtain attorney letters from legal counsel engaged by the entity. |
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| 10 | |
Which of the following types of audit documentation review is focused on ensuring that the quality of audit work and reporting is consistent with the quality standards of the firm? |
| | A) | Review of staff work by audit supervisor. |
| | B) | Review of staff work by audit manager. |
| | C) | Review of work by audit manager and audit partner. |
| | D) | Review of work by second (reviewing) partner. |
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