B apply to the state insurance commission for an ad

b. Apply to the state insurance commission for an ad-
visory opinion.
115. A CPA is permitted to accept a separate engagement
( not in conjunction with an audit of financial statements) to audit an entity’s
Schedule of Schedule of
accounts receivable royalties
116. Financial information is presented in a printed form that prescribes
the wording of the independent auditor’s
report. The form is not acceptable to the auditor because the form calls for
statements that are inconsistent with the audi-
tor’s responsibility. Under these circumstances, the auditor
most likely would

117. A registration statement filed with the SEC contains the reports of two
independent auditors on their audits of financial statements for different
periods. The predecessor auditor who audited the prior period financial
statements generally should obtain a letter of representation from the
a. Successor independent auditor. b.Client’s
audit committee.
c. Principal underwriter.
d. Securities and Exchange Commission.
118. Which of the following statements is correct concern- ing letters for
underwriters, commonly referred to as comfort letters?
119. Comfort letters ordinarily are signed by the client’s a.
120. Comfort letters ordinarily are addressed to a.