1. Revenue and expense accounts are audited in conjunction with related 2. 3. The 4. Statements Material fluctuations revealed by analytical procedures should be investigated to determine whether they are indicative of material the financial statements. 5. A 6. When paper paychecks are issued, the company's of the company. accounts. department of the company should authorize changes in employee pay rates. should distribute them to the employees The primary purpose of the primarily responsible for the fairness of the financial statements. 7. The auditors should obtain a letter from the client's attorneys describing is a list of all specific disclosures required by financial accounting standards. is to have the client's principal officers acknowledge that they are 8. In estimating the total likely misstatement in the financial statements, the auditors should combine misstatements, projected misstatements, and judgmental misstatements. If the auditors conclude that the total misstatement in the financial statements is material, they should 9. to adjust the financial statements or issue a/n) opinion balance sheet misstatements Answer

The audit report date on a standard unmodified opinion audit report indicates A. the last day of the fiscal period. B. the last day of the auditor's responsibility for the review of significant events that occurred after the date of the financial statements. O C. the date on which the financial statements were filed with the Securities and Exchange Commission. D. the last date on which users may institute a lawsuit against either the client or the auditor.

S1: Most of the audit procedures in examining the financial statement components are performed by the junior or associate auditors. S2: At the completion stage, the reviewer of working papers should check if the approved adjusting journal entries have been properly posted and the amounts in the working trial balance agree with the amounts shown in the lead schedules.    a. BOTH STATEMENTS ARE TRUE b. BOTH STATEMENTS ARE FALSE c. ONLY S1 IS TRUE d. ONLY S2 IS TRUE

We discussed a number of assertions about account balances, classes of transactions, and disclosures contained in financial statements. These assertions include existence and occurrence, rights and obligations, completeness, cutoff, valuation and disclosure.  When we gather audit evidence, we gather evidence to support financial statement assertions.    Required:   Describe how each of these assertions relates to Accounts Receivable. Conor & Evan, CPAs are the auditors for Mojito, Inc. In the course of the audit, Conor & Evan select a sample of Mojito’s customers from the Accounts Receivable subsidiary ledger and send letters to them asking for confirmation of the Accounts Receivable balances owed to Mojito, Inc. Describe which of the assertions will be supported by the evidence obtained from the confirmations sent to Mojito’s customers.  Explain how the evidence supports the assertion and, if it does not support the assertion, why not