Chapter 11 Gleim

Question 1

which issues related to internal control are required to be communicated in writing to management?

Answer 1

significant deficiencies and material weaknesses

Question 2

how is significant deficiency related to material weakness?

Answer 2

less severe than material weakness

Question 3

the primary source of information about litigations, claims, and assessments is the

Answer 3

client’s legal counsel

Question 4

the primary reason an auditor requests letters of inquiry sent to a client’s legal counsel is to provide the auditor with

Answer 4

corroboration of the information furnished by management

Question 5

in auditing contingent liabilities, which procedure would an auditor perform?

Answer 5

read the minutes of the board of directors meetings

Question 6

wilson’s report should be dated:

Answer 6

using dual-dating

Question 7

what is not a subsequent events procedure?

Answer 7

making inquiries with respect to financial statements

Question 8

an auditor is reporting on comparative financial statements. the management representation letter needs to:

Answer 8

cover all the years in the report

Question 9

subsequent events are

Answer 9

events that happen after the balance sheet date but before the auditor’s report date

Question 10

which matter will an auditor most likely include in a management representation letter?

Answer 10

management’s acknowledgment of its responsibility to detect employee fraud

Question 11

a management representation letter is signed by

Answer 11

CEO and CFO

Question 12

which matter is included in a management representation letter?

Answer 12

a confirmation that the entity has compiled with contractual agreements