Chapter 17 Quiz - Chapter 17 Quiz Review of attempt 2...

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Chapter 17 Quiz Review of attempt 2 Started on Sunday, April 3, 2011, 09:38 PM Completed on Monday, April 18, 2011, 11:26 PM Time taken 15 days 1 hour Overdue 15 days 1 hour Grade 0 out of a maximum of 10 ( 0 %) Question 1 Marks: 1 If an auditor dates the auditor's report on financial statements for the year ended December 31, 2009, as of February 10, 2010, except for Note J, as to which the date is March 3, 2010, the auditor is acknowledging responsibility to actively search for and ensure proper handling by management of Choose one answer. a. All subsequent events occurring through March 3, 2010 b. All subsequent events occurring through February 10, 2010 c. All subsequent events occurring through February 10, 2010 and the specific subsequent event referred to in Note J through March 3, 2010 d. Only the specific subsequent event referred to in Note J as of March 3, 2010 Incorrect Marks for this submission: 0/1. Question 2 Marks: 1
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A disclosure of a contingent liability in the footnotes is made rather than adjusting the financial statement accounts when: Choose one answer. a. The outcome of the event is judged to be reasonably possible and the loss can be reasonably estimated. b. The loss can be reasonably estimated, but the outcome is unknown. c. The outcome of the event is judged to be reasonably possible but the loss cannot be reasonably estimated. d. The outcome is unknown and the loss is reasonably estimable but the client does not want to book the loss. Incorrect Marks for this submission: 0/1. Question 3 Marks: 1 If there is substantial doubt about the entity's ability to continue as a going concern, the auditor should obtain information about management's plans to mitigate the problem and assess the likelihood that such plans can be implemented. Answer: TrueFalse Incorrect Marks for this submission: 0/1. Question 4 Marks: 1 As part of an audit, a CPA often requests a representation letter from the client. Which one of the following is not a valid purpose of such a letter? Choose one answer. a. To provide audit evidence b. To emphasize to the client their responsibility for the fairness of the financial statements c. To satisfy himself or herself that a certain account balance is fairly stated when certain customary auditing procedures are not
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performed d. To provide possible protection to the CPA against a charge of knowledge in cases where fraud is subsequently discovered to have existed in the accounts Incorrect Marks for this submission: 0/1. Question 5 Marks: 1 After issuance of the auditor's report, the auditor has no obligation to make any further inquiries with respect to audited financial statements covered by an auditor's report unless Choose one answer. a. A lawsuit in which risk of loss was considered
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This note was uploaded on 05/06/2011 for the course AUDITING 4505 taught by Professor Messier during the Spring '11 term at University of Minnesota Duluth.

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Chapter 17 Quiz - Chapter 17 Quiz Review of attempt 2...

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