Kahoot Quiz on Audit Completion and Review

Question 1

When auditing contingent liabilities, which procedures would be least effective?

Answer 1

Reviewing the bank confirmation letter.

Question 2

Generally, loss contingencies that are judged to be remote:

Answer 2

Do not require any disclosure in the footnotes.

Question 3

Subsequent events for reporting purposes are defined as events which occur subsequent to the:

Answer 3

Balance sheet date but prior to the date of auditor’s report.

Question 4

Which is not an example of Type I (adjusting events)?

Answer 4

Announcement of merger and acquisition.

Question 5

There are 3 types of subsequent events

Answer 5

False. There’s only 2 types of subsequent events (adjusting type I and non-adjusting type II).

Question 6

ISA 560: subsequent events deals w/ responsibilities of auditors in 3 time frames

Answer 6

True.

1. Prior to the financial reporting date
2. After the financial reporting date but before the issuance of auditor’s report
3. After the issuance of auditor’s report

Question 7

Settlement of material litigation in the 1st time frame would need to be:

Answer 7

Adjusted in the FS

Question 8

Management representation letter is prepared by the auditor’s to the management.

Answer 8

False.
It is prepared by the management in written form to acknowledge whatever information that the management has provided to the auditors are true.

Question 9

If the fact of an event become known to the auditor in the 2nd or 3rd time frame, he / she should ask:

Answer 9

Could I have known about this matter in the 1st time frame.

Question 10

Type II subsequent events are conditions that require an adjustment to the financial statements.

Answer 10

False. Type II events are non-adjusting events.