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

Question 130

Matching

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

Premises:

Responses:

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

completing the engagement checklist

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

the use of one audit report date for normal subsequent events and a later date for one or more subsequent events

dual-dated audit report

agreements that the entity will hold to a fixed set of conditions such as the purchase or sale of merchandise at a stated price

commitments

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

subsequent events

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

review for subsequent events

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

pending claim

financial statement disclosure checklist

letter of representation

unadjusted misstatement worksheet

contingent liability

other information in annual reports

inquiry of client's attorneys

Audit documentation review

management letter

independent review

Premises:

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

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

the use of one audit report date for normal subsequent events and a later date for one or more subsequent events

agreements that the entity will hold to a fixed set of conditions such as the purchase or sale of merchandise at a stated price

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

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

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

Responses:

completing the engagement checklist

unasserted claim

dual-dated audit report

commitments

subsequent events

review for subsequent events

pending claim

financial statement disclosure checklist

letter of representation

unadjusted misstatement worksheet

contingent liability

other information in annual reports

inquiry of client's attorneys

Audit documentation review

management letter

independent review

Correct Answer:

Premises:

Responses:

completing the engagement checklist

unasserted claim

dual-dated audit report

commitments

subsequent events

review for subsequent events

pending claim

financial statement disclosure checklist

letter of representation

unadjusted misstatement worksheet

contingent liability

other information in annual reports

inquiry of client's attorneys

Audit documentation review

management letter

independent review