Assurance Final Exam Questions With Correct Answers.

ASSURANCE FINAL EXAM
QUESTIONS WITH CORRECT
ANSWERS
ChapterP17:PCompletingPthePAuditP-PCORRECTPANSWERS-



DefinePaPcontingentPliabilityP-PCORRECTPANSWERS-
APpotentialPfuturePobligationPtoPanPoutsidePpartyPforPanPunknownPamountPresultingPfromPactivitie
sPthatPhavePalreadyPtakenPplace



HowPdoPauditorsPfindPcommitmentsPandPcontingencies?P-PCORRECTPANSWERS--
PInquirePofPmanagement



-PReviewPCRAPnoticesPofPassessment

-PReviewPminutes

-PAnalyzePlegalPexpense

-PObtainPlegalPconfirmationPletters

-PReadPcontractsPandPagreements



WhatParePthePproblemsPwithPaskingPquestionsPtoPlawyersP-PCORRECTPANSWERS-
1.)PLawyersParePnotPrequiredPtoPmentionPthePomissionPofPpossiblePclaimsP-
PtheyPdiscussPthePclaimsPwithPmanagement,PandPtellPmanagementPtheyPhavePaPresponsibilityPtoPte


llPthePauditor

2.)PLawyersPmayPprovidePlimitedPresponsesPorPnotPrespondPatPallPduePtoPcompetingPincentivesP-
PtheyPmayPdisclosePsomethingPtoPthePaccountantPthatPifPincludedPinPthePnotePcouldPCAUSEPaPlawsu


it.



DefinePaPsubsequentPeventP-PCORRECTPANSWERS-
AnyPeventPthatPhappensPafterPthePbalancePsheetPdatePthatPaffectsPthePpresentationPofPthePfinancia
lPstatements.

-AuditorsParePresponsiblePupPuntilPthePauditPdate

,WhatParePtwoPtypesPofPsubsequentPevents?P-PCORRECTPANSWERS--
PThosePthatPrequirePadjustment



-PThosePthatPrequirePnotePdisclosure



HowPcanPauditorsPtestPsubsequentPevents?P-PCORRECTPANSWERS--PInquiryPofPmanagement

-PCorrespondencePwithPlawPfirms

-PReviewPofPinternalPfinancialPstatementsPpreparedPafterPthePB/SPdate

-PReviewPofPrecordsPpreparedPafterPthePB/SPdate

-PExaminationPofPminutesPofPmeetingsPfromPafterPthePB/SPdate

-PAcquisitionPofPaPletterPofPrepresentation



WhatPstepsParePtakenPtoPaccumulatePfinalPevidenceP-PCORRECTPANSWERS--
PDesignPfinalPanalyticalPprocedures



-EvaluatePgoingPconcernPassumption

-ObtainPaPclientPrepresentationPletter



WhyPdoPauditorsPobtainPaPclientPrepresentationPletterP-PCORRECTPANSWERS--
PWrittenPrepresentationPofPmanagementPresponsibilitiesPoverPfinancialPstatements



-ToPdocumentPmanagementPresponsesPfromPinquiriesPduringPthePaudit



WhyPisPtherePaPworkingPpaperPreviewP-PCORRECTPANSWERS--
PEvaluatePthePperformancePofPinexperiencePstaff



-PMakePsurePthePauditPqualityPmeetsPthePfirmsPstandards

-CounteractPthePbiasPthatPentersPintoPanPauditor'sPjudgement

,WhatPitemsPneedPtoPbePcommunicatedPtoPthePauditPcommitteePandPmanagementP-
PCORRECTPANSWERS--PCommunicatePmisstatementsPandPillegalPacts



-CommunicatePcontrolPdeficiencies

-OtherPcommunicationsPwithPthePauditPcommitte

-ManagementPletter



ChapterP18:PAuditPReportsPonPFinancialPStatementsP-PCORRECTPANSWERS-



WhatParePtheP5PtypesPofPauditor'sPreports?P-PCORRECTPANSWERS--UnmodifiedPopinion

-QualifiedPopinionP(scope)

-QualifiedPopinionP(GAAPPDeparture)

-PDisclaimerPofPopinionP(materialPandPpervasivePscope)

-PAdversePopinionP(MaterialPandPpervasivePGAAP)



WhatPsectionPofPthePauditPreportPincludesPthePgoingPconcernPdisclosure?P-PCORRECTPANSWERS-
"MaterialPUncertaintyPRelatedPtoPGoingPConcern"



ExplainPwhatPitemsPappearPunderPemphasisPofPmatter(s)P-PCORRECTPANSWERS--
SignificantPuncertaintyPregardingPthePfuturePoutcomePofPexceptionalPlitigationPorPregulatoryPactio
nP(suchPasPincomePtaxesPthatPmayPbePcollectiblePorPpayable)

-EarlyPapplicationPofPaPnewPaccountingPstandardPthatPhasPaPpervasivePeffectPonPthePFS

-PDiscontinuedPoperations

-ThreatsPofPexpropriationPofPassets

-SignificantPtransactionsPwithPrelatedPparties

-UnusuallyPimportantPsubsequentPevents

, WhatPitemsParePappearPunderPotherPmattersP-PCORRECTPANSWERS--
PLaw,Pregulations,PorPcommonPpracticePrequiresPorPpermitsPthePauditorPtoPelaboratePonPcertainPite


ms

-ThePauditorPhasPotherPreportingPresponsibilitiesPthatParePinPadditionPtoPthePFS

-
PThePentityPhasPpreparedPmorePthanPonePsetPofPfinancialPstatements.PexPonePinPaccordancePwithPaP


nationalPframeworkPandPonePinPaccordancePwithPIFRS

-
ThePfinancialPstatementsPwerePpreparedPforPaPspecialPpurposePandPthePauditorPconsidersPitPnecess
aryPtoPhighlightPthatPthePdistributionPofPthePreportPisPrestrictedPtoPcertainPintendedPusers



WhatPisPanPunmodifiedPopinionP-PCORRECTPANSWERS--
ThePauditorPconcludesPthatPthePfinancialPstatementsPofPaPgivenPentityParePpresentedPfairly,PinPallPm
aterialPrespects,PinPaccordancePwithPgenerallyPacceptedPaccountingPprinciples.

-CanPincludePemphasisPofPmattersPorPotherPmatters



WhatPisPaPqualifiedPauditPopinionP(scope)P-PCORRECTPANSWERS--
IndicatesPthatPtherePwasPaPscopePlimitation.

-
"PInPourPopinion,PexceptPforPthePpossiblePeffectsPofPthePmattersPdescribedPinPthePBasisPforPQualifie
dPOpinionPparagraph,PthePfinancialPstatementsPpresentPfairly,PinPallPmaterialPrespectsPinPaccordanc
ePwithPthePgenerallyPacceptedPaccountingPprinciples.



WhatPisPaPqualifiedPauditPopinionP(GAAP)P-PCORRECTPANSWERS-
ThePBasisPforPQualifiedPopinionPexplainsPthePGAAPPdeparturePinPaPspecificParea.PThePqualifiedPopin
ionPsectionPstates.P"inPourPopinion,PexceptPforPthePeffectsPofPthePmatterPdescribedPinPthePBasisPforP
QualifiedPOpinionPsectionPofPourPreport,PthePaccompanyingPfinancialPstatementsPpresentPfairly,PinP
allPmaterialPrespects..."



ExplainPaPdisclaimerPofPopinionPandPexplainPwhyPitPisPdifferentPthanPaPqualifiedPopinionP-
PCORRECTPANSWERS-


APdisclaimerPofPopinionPwhenPtherePisPaPmaterialPandPpervasivePscopePlimitation.PThisPisPdifferentPf