Audit Final Exam questions and answers
What type of misstatement relates to Allowance for Doubtful Accounts proposed AJE's?
v v v v v v v v v v v
- answer-Judgemental
v v
Auditors must perform procedures related to subsequent events through which date? -
v v v v v v v v v v v
answer-The date of the audit report
v v v v v v
Search for unrecorded liabilities is performed through which date? - answer-The date of
v v v v v v v v v v v v
the audit report
v v v
Which letters are typically received at the very end of an audit? - answer-Management's
v v v v v v v v v v v v v
Representation Letter, Letter of Inquiry
v v v v v
Of the two letters above, receipt of which is typically the very last step? - answer-
v v v v v v v v v v v v v v v
Management's Representation Letter v v
Which Income Statement accounts are typically audited with Accounts Receivable? -
v v v v v v v v v v
answer-Bad Debt Expense, Sales
v v v v
Which expense account is typically audited with Notes Payable? - answer-Interest
v v v v v v v v v v
Expense
v
Do attorneys make certain that disclosures are typed into the audit report? Or do they
v v v v v v v v v v v v v v
simply provide the information for the footnote? - answer-Simply Provide the Information
v v v v v v v v v v v v
Which of these is likely NOT a footnote disclosure? Commitments, Related Party
v v v v v v v v v v v
liabilities, Loss contingencies, List of old receivable balances. - answer-List of old
v v v v v v v v v v v v
receivable balances
v v
Litigation existed at 12/31 and was settled on 1/5 of the following year. Is an adjustment
v v v v v v v v v v v v v v v
likely necessary in the FS? - answer-Yes
v v v v v v v
Plans are made during February 2021 to sell a business later in the year. Should that
v v v v v v v v v v v v v v v
information be on the 12/31 FS as a footnote? Which type of Subsequent event is it? -
v v v v v v v v v v v v v v v v v
answer-Type 2
v v
The term "except for" tells you that what type of opinion is being issued? - answer-
v v v v v v v v v v v v v v v
Qualified
What type of misstatement relates to Allowance for Doubtful Accounts proposed AJE's?
v v v v v v v v v v v
- answer-Judgemental
v v
Auditors must perform procedures related to subsequent events through which date? -
v v v v v v v v v v v
answer-The date of the audit report
v v v v v v
Search for unrecorded liabilities is performed through which date? - answer-The date of
v v v v v v v v v v v v
the audit report
v v v
Which letters are typically received at the very end of an audit? - answer-Management's
v v v v v v v v v v v v v
Representation Letter, Letter of Inquiry
v v v v v
Of the two letters above, receipt of which is typically the very last step? - answer-
v v v v v v v v v v v v v v v
Management's Representation Letter v v
Which Income Statement accounts are typically audited with Accounts Receivable? -
v v v v v v v v v v
answer-Bad Debt Expense, Sales
v v v v
Which expense account is typically audited with Notes Payable? - answer-Interest
v v v v v v v v v v
Expense
v
Do attorneys make certain that disclosures are typed into the audit report? Or do they
v v v v v v v v v v v v v v
simply provide the information for the footnote? - answer-Simply Provide the Information
v v v v v v v v v v v v
Which of these is likely NOT a footnote disclosure? Commitments, Related Party
v v v v v v v v v v v
liabilities, Loss contingencies, List of old receivable balances. - answer-List of old
v v v v v v v v v v v v
receivable balances
v v
Litigation existed at 12/31 and was settled on 1/5 of the following year. Is an adjustment
v v v v v v v v v v v v v v v
likely necessary in the FS? - answer-Yes
v v v v v v v
Plans are made during February 2021 to sell a business later in the year. Should that
v v v v v v v v v v v v v v v
information be on the 12/31 FS as a footnote? Which type of Subsequent event is it? -
v v v v v v v v v v v v v v v v v
answer-Type 2
v v
The term "except for" tells you that what type of opinion is being issued? - answer-
v v v v v v v v v v v v v v v
Qualified
