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T/F 46. If an auditor is engaged by a client after the entity’s year end, the...

T/F

46. If an auditor is engaged by a client after the entity’s year end, the auditor will automatically encounter a scope limitation with respect to the entity’s ending inventory.

47. When issuing a review or compilation report, should there be a reference to the country of origin of the accounting principles used to prepare the financial statements, similar to the requirement when issuing audited financial statements.

a. SSARS does not require the reference

b. SSARS does require the reference.

48. SSARS #21 requires a title for:

a. A compilation report only.

b. A review report only.

c. Both a compilation report and a review report.

d. None of the above, because only an audit report requires a title and an addressee.

49. The accountant is required to obtain a representation letter from the client in which of the following engagements:

a. Audit

b. Review

c. Compilation

d. Audit and Review

e. Audit, review, and compilation

50. When performing which of the following services is the accountant required to perform specific procedures to evaluate whether there is substantial doubt about the entity’s ability to continue as a going concern.

a. Compilation

b. Review

c. Both a compilation and review

d. Neither a compilation or review

Expert Solution

1)False

If auditor is engaged at the end of year he will not be automatically encounter scope on limitation with respect to inventory.He can check inventory record.

2)B

SSARS (Statement on Standards for Acounting and Review Services)requires reference of principals used to prepare the financial statements.

3)B

Only Review Report

No title is required for compilation of financial statement

Compilation is just putting the financial information into financial statement format.

4)d

Audit & Review

In Audit there is higher level of assurance.In Review ,moderate level of assurance is obtained.In Review analytic procedures are performed to obtain assurance like inquiries from organisation personnel.Accountant is required to obtain representation letter from client

5)B

Review

Going Concern is fundamental assumption which is required to consider by accountant.Accoutant ascertain that whether there is any doubt regarding going concern assumption.

ekkarill92 answered 2 years ago

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