ch11Student: ___________________________________________________________________________1.Interim testing is ordinarily done prior to the date of the financial statements. True False2.Auditors are notresponsible for evaluating the accuracy of management's estimates but the reasonableness of those estimates. True False3.While useful, analytical procedures are notrequired in the final review stages of the audit. True False4.The existence of "miscellaneous" revenue or expense accounts may signal the practice of earnings management. True False5.Auditors' initial source of information about litigation, claims, and assessments is the client's attorney. True False6.The auditor ordinarily requests the attorney letter directly from the attorneys. True False7.Attorneys should always provide a dollar estimate of the amount of potential loss for items included in the attorney letter. True False8.If the attorney's views differ from information provided in the attorney letter, the attorney is notexpected to provide additional explanation to auditors. True False9.A primary purpose of obtaining written representations is for management to acknowledge their responsibility for the fairness of the financial statements. True False10.Written representations should be dated as of the date of the financial statements. True False11.If the client refuses to provide written representations, auditors should issue either a qualified opinion or adverse opinion, depending on the importance of the omission. True False12.The chief executive officer, chief financial officer, or other executive-level client personnel should sign written representations. True False13.It is ultimately the client's responsibility for adjusting the financial statements for matters identified during the audit. True False14.The engagement quality review of audit documentation by a different partner focuses on whether all appropriate steps in the audit were performed and whether the referencing among all audit documentation is clear. True False
15.Roll-forward procedures are normally conducted prior to the date of the financial statements. True False16.Reviewing the latest interim financial statements is one method of identifying subsequent events. True False17.Subsequent events may provide additional information about a condition that existed at the date of the financial statements. True False18.Subsequently discovered facts are matters identified by auditors after the date of the financial statements but prior to the date of the auditors' report. True False19.If a necessary audit procedure has been omitted, auditors should first identify whether individuals are currently relying on the client's financial statements and auditors' reports. True False20.Auditors' communications with the individuals charged with governance of the client can be provided either during the audit or at the conclusion of the audit.
- Spring '12