Solved

Match Seven of the Terms (A-P) with the Description/definitions Provided

Question 155

Matching

Match seven of the terms (a-p) with the description/definitions provided below (1-7).

Premises:

Responses:

a potential legal claim against a client where the condition for a claim exists but no claim has been filed

pending claim

a review of the financial statements and the entire set of audit files by an independent reviewer to whom the audit team must justify the evidence accumulated and the conclusions reached

unasserted claim

agreements that the entity will hold to a fixed set of conditions

subsequent events

a potential future obligation to an outside party for an unknown amount resulting from activities that have already taken place

management letter

the use of one audit report date for normal subsequent events and a later date for one or more subsequent events such as the purchase or sale of merchandise at a stated price

Audit documentation review

transactions that occurred after the balance sheet date which affect the fair presentation or disclosure of the statements being audited

contingent liability

a written communication from the client to the auditor formalizing statements that the client has made about matters pertinent to the audit

independent review

unadjusted misstatement worksheet

review for subsequent events

commitments

other information in annual reports

dual-dated audit report

letter of representation

financial statement disclosure checklist

inquiry of client's attorneys

completing the engagement checklist

Premises:

a potential legal claim against a client where the condition for a claim exists but no claim has been filed

a review of the financial statements and the entire set of audit files by an independent reviewer to whom the audit team must justify the evidence accumulated and the conclusions reached

agreements that the entity will hold to a fixed set of conditions

a potential future obligation to an outside party for an unknown amount resulting from activities that have already taken place

the use of one audit report date for normal subsequent events and a later date for one or more subsequent events such as the purchase or sale of merchandise at a stated price

transactions that occurred after the balance sheet date which affect the fair presentation or disclosure of the statements being audited

a written communication from the client to the auditor formalizing statements that the client has made about matters pertinent to the audit

Responses:

pending claim

unasserted claim

subsequent events

management letter

Audit documentation review

contingent liability

independent review

unadjusted misstatement worksheet

review for subsequent events

commitments

other information in annual reports

dual-dated audit report

letter of representation

financial statement disclosure checklist

inquiry of client's attorneys

completing the engagement checklist

Correct Answer:

Premises:

Responses:

pending claim

unasserted claim

subsequent events

management letter

Audit documentation review

contingent liability

independent review

unadjusted misstatement worksheet

review for subsequent events

commitments

other information in annual reports

dual-dated audit report

letter of representation

financial statement disclosure checklist

inquiry of client's attorneys

completing the engagement checklist