In a standard inquiry of clients attorney letter the attorney is requested to

In a standard inquiry of clients attorney letter the

  • Pontifical Catholic
  • ACCT 431
  • Test Prep
  • Chrollo
  • 46
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12) In a standard inquiry of client's attorney letter, the attorney is requested to communicate about contingencies up to the balance sheet date.A) TrueB) FalseAnswer: BTerms: Standard inquiry of client's attorney letterDiff: ModerateObjective: LO 24-3AACSB: Reflective thinking skills16
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13) If an attorney refuses to provide the auditor with information about material existing lawsuitsor unasserted claims, current professional standards require that the auditor consider the refusal as a scope limitation.Learning Objective 24-41) The auditor has a responsibility to review transactions and activities occurring after the balance sheet date to determine whether anything occurred that might affect the statements beingaudited. The procedures required to verify these transactions are commonly referred to as the review for:17
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2) Which type of subsequent event requires consideration by management and evaluation by the auditor?Subsequent events that do not have a directeffect on the financial statements but forwhich disclosure may be required.YesYesSubsequent events that do not have a directeffect on the financial statements but forwhich disclosure may be required.NoNoSubsequent events that do not have a directeffect on the financial statements but forwhich disclosure may be required.YesNoSubsequent events that do not have a directeffect on the financial statements but forwhich disclosure may be required.NoYes3) Whenever subsequent events are used to evaluate the amounts included in the statements, caremust be taken to distinguish between conditions that existed at the balance sheet date and those that come into being after the balance sheet date. The subsequent information should not be incorporated directly into the statements if the conditions causing the change in valuation:A) took place before the balance sheet date.
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  • Winter '15
  • DR.IRRIZARY
  • Balance Sheet, balance sheet date, AACSB

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