AUDIT II UPDATED ACTUAL EXAM QUESTIONS
AND CORRECT ANSWERS
Interim testing normally occurs between what two date? - CORRECT ANSWERS Beginning
of the year under audit and date of the financial statements
Which of the following best describes the auditor's responsibility with respect to management's
estimates? - CORRECT ANSWERS Evaluating the reasonableness of management's
estimates
Why should auditors be particularly concerned with "miscellaneous", "other" and "Clearing"
accounts classified as revenues or expenses? - CORRECT ANSWERS These accounts may
represent attempts of earnings management
An important method used by auditors to learn of material contingencies is - CORRECT
ANSWERS Obtaining responses to an attorney letter
Which of the following procedures is not used in auditors' examination of litigation, claims, and
assessments? - CORRECT ANSWERS Performing analytical procedures
Which party should request a letter regarding litigation, claims, and assessments from the
client's attorney? - CORRECT ANSWERS Client
To whom should written representations be addressed? - CORRECT ANSWERS Auditors
What is the primary purpose of obtaining written representations? - CORRECT
ANSWERS To impress upon management its primary responsibility for the financial
statements
AND CORRECT ANSWERS
Interim testing normally occurs between what two date? - CORRECT ANSWERS Beginning
of the year under audit and date of the financial statements
Which of the following best describes the auditor's responsibility with respect to management's
estimates? - CORRECT ANSWERS Evaluating the reasonableness of management's
estimates
Why should auditors be particularly concerned with "miscellaneous", "other" and "Clearing"
accounts classified as revenues or expenses? - CORRECT ANSWERS These accounts may
represent attempts of earnings management
An important method used by auditors to learn of material contingencies is - CORRECT
ANSWERS Obtaining responses to an attorney letter
Which of the following procedures is not used in auditors' examination of litigation, claims, and
assessments? - CORRECT ANSWERS Performing analytical procedures
Which party should request a letter regarding litigation, claims, and assessments from the
client's attorney? - CORRECT ANSWERS Client
To whom should written representations be addressed? - CORRECT ANSWERS Auditors
What is the primary purpose of obtaining written representations? - CORRECT
ANSWERS To impress upon management its primary responsibility for the financial
statements
