kiem 2

Subsequent discoveries of facts requiring the reissuance of financial statements arise from events occurring after the date of the auditor's report.

• T

• F

Auditors are required to communicate either orally or in writing with the audit committee about internal control weaknesses.

• T

• F

If, during the completion phase of the audit, the auditor determines that he or she has not obtained sufficient evidence to draw a conclusion about the fairness of the client's financial statements, there are two choices: accumulate additional evidence or issue either a qualified or an adverse opinion.

• T

• F

An independent review must be performed of all audits.

• T

• F

The letter of representation is prepared on the CPA firm's letterhead, addressed to the client's chief executive officer, and signed by the audit engagement partner.

• T

• F

Auditors are required to obtain a letter of representation that describes management's planned solutions to all internal control weaknesses identified during an audit.

• T

• F

At the completion of the audit, management is typically asked to make a written statement as a part of the engagement letter that it is aware of no undisclosed contingent liabilities.

• T

• F

Current professional auditing standards mandate the use of analytical procedures during the testing phase of the audit.

• T

• F

If the auditor is unable to determine the effect of a subsequent event on the effectiveness of internal control at year-end, the auditor must give an adverse opinion on internal control over financial reporting.

• T

• F

When the auditor's name is associated with a registration statement under the Securities Act of 1933, the auditor's responsibility for reviewing subsequent events is limited to the date of auditor's report, not to the date the registration becomes effective.

• T

• F