Completion of audit

Which of the following conditions or events most likely would cause an auditor to have substantial doubt about an entity's ability to continue as a going concern?

• Cash flows from operating activities are negative

• Stock dividends replace annual cash dividends

• Significant related party transactions are pervasive

• Research and Development projects are postponed

The following statements are ordinarily included in a management representation letter, except

• The completeness and availability of minutes of stockholders' and directors' meetings.

• Sufficient appropriate audit evidence has been made available to permit the expression of an unqualified opinion.

• There have been no irregularities involving management or employees who have a significant role in internal control or that could have a material effect on the financial statements.

• The financial statements are free of material misstatements, including omissions.

An auditor is concerned with completing various phases of the audit after the balance sheet date. This subsequent period extends to the date of the

• Delivery of the auditor's report to the client

• Auditor's report

• Final review of the audit working papers

• Public issuance of the financial statements

The primary source of information to be reported about litigation, claims, and assessments is the

• Independent auditor.

• Client's management.

• Court records.

• Client's lawyer.

The written representations shall be in the form of a representation letter addressed to the

• Entity's management.

• Auditor.

• Entity's chief executive officer.

• Entity's chief financial officer.

Analytical procedures used in the overall review stage of the audit generally include A. Retesting controls that appeared to be ineffective during the assessment of control risk. B. Considering unusual or unexpected account balances that were not previously identified. C. Gathering evidence concerning account balances that have not changed from the prior year. D. Performing tests of transactions to corroborate management's financial statement assertions.

• Retesting controls that appeared to be ineffective during the assessment of control risk

• Considering unusual or unexpected account balances that were not previously identified

• Gathering evidence concerning account balances that have not changed from the prior year

• Performing tests of transactions to corroborate management's financial statement assertions

Analytical procedures performed in the overall review stage of an audit suggest that several accounts have unexpected relationships. The results of these procedures most likely indicate that

• The communication with the audit committee should be revised

• Irregularities exist among the relevant account balances

• Additional substantive tests of details are required

• Internal control activities are not operating effectively

The responsibility for the identification and disclosure of related parties and transactions with such parties rests with the A. Auditor. B. Entity's management. C. Financial Reporting Standards Council (FRSC). D. Securities and Exchange Commission (SEC).

• Auditor

• Entity's management

• Financial Reporting Standards Council (FRSC)

• Securities and Exchange Commission (SEC)

PSA 570 (Going Concern) states that a fundamental principle in the preparation of financial statements is the going concern assumption. Under this assumption, an entity is ordinarily viewed as continuing in business for the foreseeable future with neither the intention nor the necessity of liquidation, ceasing trading or seeking protection from creditors pursuant to laws and regulations. The responsibility to make an assessment of an entity's ability to continue as a going concern rests with the

• Auditor

• Entity's management

• Securities and Exchange Commission (SEC)

• Entity's creditors

The date of the written representation shall be

• After the date of the auditor's report.

• After the date of approval of the entity's financial statements.

• Before the entity's financial statements are issued.

• As near as practicable to, but not after the date of the auditor's report on the financial statements.