Which of the following is typically the auditors initial procedure performed to identify litigation claims and assessments?

1. Which of the following activities is ordinarily performed prior to year end?
   
   
   
   

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   • Which of the following procedures would an auditor most likely perform regarding litigation?
   • What are the procedures that the auditor should do in substantiating the claims and litigations of the client?
   • What is an auditor's primary method to corroborate information on litigation claims and assessments?
   • Which of the following substantive procedures would auditors most likely perform to obtain evidence about the occurrence of subsequent events?

   C. interim testing

2. Procedures used to allow auditors to extend their conclusions to the end of the year under audit are referred to as:
   
   
   
   

   B. roll forward work

3. Which of the following transaction cycle(s) are most closely related to gains or losses on disposals of property, plant and equipment?
   
   
   
   

   A. acquistion/expenditure cycle

4. Which of the following procedures is normally not considered in the auditors' substantive procedures for revenue and expense accounts?
   
   
   
   

   A. individually confirm significant transactions with 3rd parties

5. Which of the following is typically the auditors' initial procedure performed to identify litigation, claims, and assessments?
   
   
   
   

   C. inquire of the entity regarding the existence of litigation, claims, and assessments

6. Which of the following information is not included in the attorney letter?
   
   
   
   

   D. the attorney's expert opinion as to the probability of an unfavorable judgement against the entity

7. Which of the following communications is ordinarily signed by auditors?
   
   
   
   

   C. internal control deficiency letter

8. Which of the following statements is true with respect to management representations?
   
   
   
   

   A. management representations are used to corroborate information obtained during the audit

9. Which of the following procedures would not be performed by auditors to identify subsequent events?
   
   
   
   

   D. review prior year financial statements and disclosures

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?
    
    
    
    

    D. review of work by second (reviewing) partner

11. The main purpose of a management representation letter is to:
    
    
    
    

    A. impress upon management its ultimate responsiblity for the financial statements and disclosures

12. Which one of these substantive procedures or sources is not used to obtain evidence about contingencies?
    
    
    
    

    A. scan expense accounts for credit entries

13. A type 1 subsequent event involves subsequent inforamtion about a condition that existed at the balance sheet date. Subsequent knowledge of which of the following would casue the company to adjust its December 31 financial statements
    
    
    
    

    C. Settlement of litigation in February for $100,000 that had been estimated at $12,000 in the December 31 financial statements

14. A. Griffin audited the financial statements of Dodger Magnificant Corporation for the year ended December 31, 2004. She completed the audit fieldwork on January 30 and later learned of a stock split voted by the board of directors on February 5. The financial statements were changed to reflect the split, and she now needs to dual date the auditor report before sending it to the company. Which of the following is the proper form?
    
    
    
    

    C. December 31, 2004, except as to Note X which is dated February 5, 2005

15. The auditing standards regarding "subsequent discovery of facts that existed at the balance sheet date" refers to knowledge obtained after:
    
    
    
    

    A. the date the audit report was delivered to the client

16. Which of the following is ordinarily performed last in the audit examination?
    
    
    
    

    D. obtaining a signed management representation letter

17. Hall accepted an engagement to audit the year 1 financial statements XYZ Company. XYZ completed the preparation of the year 1 financial statements on February 13, year 2, and Hall began the fieldwork on February 17, year 2. Hall completed the field on March 24, year 2, and completed the report on March 28, year 2. The management representation letter normally would be dated:
    
    
    
    

    D. March 24, year 2

18. Which of the following substantive procedures should an auditor perform regarding subsequent events?
    
    
    
    

    C. compare the latest available interim statements with the financial statements being audited

19. Which of the following substantive procedures would an auditor most likely perform to obtain evidence about the occurrence of subsequent events?
    
    
    
    confirm bank accounts established after year end

    A. investigate changes in shareholders' equity occurring after year end

20. The primary reason an auditor requests letters of inquiry from a client's attorneys is to provide the auditor with:
    
    
    
    

    C. corroboration of the information furnished by management about litigation, claims, and assessments

Which of the following procedures would an auditor most likely perform regarding litigation?

What are the procedures that the auditor should do in substantiating the claims and litigations of the client?

What is an auditor's primary method to corroborate information on litigation claims and assessments?

Which of the following substantive procedures would auditors most likely perform to obtain evidence about the occurrence of subsequent events?