#95
If, during an audit, the successor auditor becomes aware of information that may indicate that financial statements reported on by the predecessor auditor may require revision, the successor auditor should
A Ask the client to arrange a meeting among the three parties to discuss the information and attempt to resolve the matter.
B Notify the client and the predecessor auditor of the matter and ask them to attempt to resolve it.
C Notify the predecessor auditor who may be required to revise the previously issued financial statements and auditor’s report.
D Ask the predecessor auditor to arrange a meeting with the client to discuss and resolve the matter.
#94
Which of the following statements is correct concerning a service auditor’s report on a service organization?
A The report may include a conclusion on whether controls have been suitably designed or on whether they have been suitably designed and operate effectively.
B The report is ordinarily distributed to all shareholders of the service organization.
C The report may include a conclusion on whether controls have been suitably designed or on compliance effectiveness.
D The report must include a summary assessment of control risk.
#93
With respect to a small company’s system of purchasing supplies, an auditor’s primary concern should be to obtain satisfaction that supplies ordered and paid for have been
A Requested by and approved by authorized individuals who have no incompatible duties.
B Received, counted, and checked to quantities and amounts on purchase orders and invoices.
C Properly recorded as assets and systematically amortized over the estimated useful life of the supplies.
D Used in the course of business and solely for business purposes during the year under audit.
FAR - 89 (8/19/14) Wiley TB, Wiley Book, Books from School, Ninja Audio/Notes
AUD - 92 (10/14/14) Wiley TB, Wiley Book, Ninja Audio
BEC - 82 (5/8/15) Mostly Ninja MCQ, sprinkles of Becker lectures and Ninja Audio
REG - (8/14/15)
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