Auditing Standards Require That the Auditor Evaluate Whether There Is
Auditing standards require that the auditor evaluate whether there is a substantial doubt about a client's ability to continue as a going concern for at least:
A) one quarter beyond the balance sheet date.
B) one quarter beyond the date of the auditor's report.
C) one year beyond the balance sheet date.
D) one year beyond the date of the auditor's report.
Auditing standards require auditors to evaluate whether there is a substantial doubt about a client's ability to continue as a going concern.One of the most important audit procedures to perform to assess the going concern question is:
A) analytical procedures.
B) confirmations from creditors.
C) statistical sampling procedures.
D) inquiries of client and its legal counsel.
Which of the following statements regarding the letter of representation is not correct?
A) It is prepared on the client's letterhead.
B) It is addressed to the CPA firm.
C) It is signed by high-level corporate officials, usually the president and chief financial officer.
D) It is optional, not required, that the auditor obtain such a letter from management.
Refusal by a client to prepare and sign the representation letter would require the auditor to issue a:
A) qualified opinion or a disclaimer of opinion.
B) adverse opinion or a disclaimer of opinion.
C) qualified or an adverse opinion.
D) unqualified opinion with an explanatory paragraph.