Homework answers / question archive / University of Tasmania BFA 713 CHAPTER 11 1)Which of the following statements is correct? An auditor should obtain evidential matter relevant to all the following factors concerning third-party litigation against a client except the: An auditor is concerned with completing various phases of the examination after the balance date

University of Tasmania BFA 713 CHAPTER 11 1)Which of the following statements is correct? An auditor should obtain evidential matter relevant to all the following factors concerning third-party litigation against a client except the: An auditor is concerned with completing various phases of the examination after the balance date

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4. A major customer of an audit client suffers a fire just after year-end and the audit client believes that this event could have a significant direct effect on the financial report. The auditor should:
5. Which of the following procedures would an auditor most likely perform to obtain evidence about the occurrence of subsequent events?
6. Which of the following procedures would an auditor most likely perform to obtain evidence about the occurrence of subsequent events?
7. After an auditor has issued an auditor’s report on the financial report, there is no obligation to make any further audit tests or enquiries with respect to the audited financial report covered by that report unless:
8. Which of the following auditing procedures is ordinarily performed last?
9. After an auditor has issued an auditor’s report on the financial report of an entity, the auditor should:
10. Samantha roberts has audited the financial report of restoration ltd for the year ended 30 june 20x0. Although samantha’s audit fieldwork was completed on 24 august 20x0, her auditor’s report was signed on 27 august 20x0 and sent to management that day. The management of restoration ltd advised samantha that their annual report, which will be mailed to shareholders on 7 october 20x0, will also include an unaudited financial report for the first quarter ended 30 september 20x0. Under the circumstances, samantha is responsible for undertaking subsequent events audit procedures through to:
11. Orange ltd’s directors voted immediately after the year-end of 30 june 20x0 to double its advertising budget for the coming year and authorised a change in advertising agencies. What is the effect of this event on the 30 june 20x0 financial report?
12. The date of the management representation letter should coincide with the:
13. Which of the procedures would an auditor ordinarily perform during the review of subsequent events?
14. The property portfolio of land pty ltd (land) is stated at a value of $1 million in excess of its current market value. Land is a non-reporting entity and does not apply the provisions of aasb 116 in the preparation of its financial report. The directors believe that it would be inappropriate to write the properties down to market value as it is their intention to hold the properties as a long-term investment and the properties will eventually recover their value. An independent valuer has advised the auditor that the property will eventually recover its full value. Sufficient appropriate audit evidence to support the value of the property would include obtaining a letter of representation from management confirming:

15. Management’s refusal to furnish a written representation on a matter that the auditor considers essential constitutes:
16. A solicitor’s response to an auditor’s request for information concerning litigation, claims and assessments will ordinarily contain which of the following?

17. When obtaining evidence regarding litigation against a client, the auditor would be least interested in determining:
18. When an audit is made in accordance with the auditing standards, the independent auditor must:
19. The audit letter to the client’s solicitor should be mailed only by the:
20. If a solicitor refuses to furnish corroborating information regarding litigation, claims and assessments, auditor should:
21. A written representation from a client’s management which, among other matters, acknowledges responsibility for the fair presentation of the financial report, should be signed by the:

22. A representation letter issued by a client:
23. An auditor will ordinarily examine invoices from solicitors primarily in order to:
24. Auditors often request that the audit client send a letter of inquiry to those solicitors who have been consulted with respect to litigation, claims or assessments. The primary reason for this request is to provide the auditor with:
25. An auditor has received a solicitor’s letter in which no significant disagreements with the client’s assessments of contingent liabilities were noted. The resignation of the client’s solicitor shortly after receipt of the letter should alert the auditor that:
26. As a result of analytical procedures, the independent auditor determines that the gross profit percentage has declined from 30 per cent in the preceding year to 20 per cent in the current year. The auditor should:
27. Which set of assertions are tested when, during completion of the audit, the audit partner conducts a final review of the format of the entity’s financial report?

28. Which of the following statements is not correct?
29. Which of the following audit procedures is most likely to assist an auditor in identifying conditions and events that may indicate substantial doubt about an entity’s ability to continue as a going concern?
30. Which of the provisions is not a basic characteristic of a letter of support?