Week 11: Completing the Audit – Short Quiz 009

Oral representations are necessary information that the auditor requires in connection with the
audit of the entity's financial statements.

The auditor shall perform audit procedures designed to obtain sufficient appropriate audit evidence
that all events occurring between the date of the financial statements and the date of the auditor's
report that require adjustment of, or disclosure in, the financial statements have been identified.

Financial statements is not affected anymore by certain events that occur after the date of the
financial statements.

Subsequent events are events occurring between the date of the financial statements and the date
of the auditor's report, and facts that become known to the auditor after the date of the auditor's
report.

After the financial statements have been issued, the auditor has still the obligation to perform any
audit procedures regarding such financial statements.

The auditor has no obligation to perform any audit procedures regarding the financial statements
after the date of the auditor's report.

When an audit is made in accordance with Philippine Standards on Auditing, the auditor should
always
a. Employ analytical procedures as substantive tests to obtain evidence about specific assertions related
to account balances.
b. Observe the taking of physical inventory on the balance sheet date.
c. Document the understanding of the client's internal control and the basis for all conclusions about the
assessed level of control risk for financial statement assertions.
d. Obtain appropriate representations from management.

A written representation from a client's management that, among other matters, acknowledges
responsibility for the fair presentation of financial statements, should normally be signed by the
a. Chair of the audit committee of the board of directors.
b. Chief executive officer and the chief financial officer.
c. Chief financial officer and the chair of the board of directors.
d. Chief executive officer, the chair of the board of directors, and the client's

After issuing a report, an auditor has no obligation to make continuing inquiries or perform other
procedures concerning audited financial statements, unless
a. Final determinations or resolutions are made of contingencies that had been disclosed in the financial
statements
b. The control environment changes after issuance of the report.
c. Information, which existed at the report date and may affect the report, comes to the auditor's
attention.
d. Information about an event that occurred after the end of field work comes to the auditor's attention.

Which of the following statements best expresses the auditor's responsibility with respect to events
occurring in the subsequent events period?
a. The auditor is fully responsible for events occurring in the subsequent period and should extend all
detailed procedures through the last day of field work.
b. The auditor has no responsibility for events occurring in the subsequent period unless these events
affect transactions recorded on or before the balance sheet date.
c. The auditor is responsible for determining that a proper cutoff has been made and for performing a
general review of events occurring in the subsequent period.
d. The auditor's responsibility is to determine that transactions recorded on or before the balance sheet
date actually occurred.