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Question
Key Co. plans to present comparative financial statements for the years ended December 31, 2010 and 2011, respectively. Smith, CPA, audited Key's financial statements for both years and plans to report on the comparative financial statements on May 1, 2012. Key's current management team was not present until January 1, 2011. What period of time should be covered by Key's management representation letter?
A. January 1, 2010 through December 31, 2011.
B. January 1, 2010 through May 1, 2012.
C. January 1, 2011 through December 31, 2011.
D. January 1, 2011 through May 1, 2012.
Answer
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Related questions
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When evaluating internal control of an entity that processes revenue transactions on the Internet, an auditor would be most concerned about the
A. Potential for computer disruptions in recording sales.
B. Lack of sales invoice documents as an audit trail.
C. Frequency of archiving and data retention.
D. Inability to establish test data.
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Tracing bills of lading to sales invoices provides evidence that
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B. Recorded sales were shipped.
C. Billed sales were shipped.
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According to the SEC's SAB No. 101, which of the following is not necessary for revenue recognition?
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1. Observe the endorsement of checks Accuracy 2. Review of cash receipts journal for unusual items Classification 3. Test a sample of cash receipts transactions for proper cash discounts Completeness 4. Test a sample of sales invoices for the presence of authorized customer order and shipping document Occurrence 5. Compare the dates on the sales invoices with the dates of the relevant shipping documents Cutoff 6. Recompute financial information on a sample of sales invoices Authorization
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When tracing a sample of shipping documents from throughout the year to the details of the sales invoices and to the sales journal and customers' accounts receivable subsidiary ledger, the auditor is testing the _____________ assertion.
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In confirming accounts receivable, an auditor decided to confirm customers' account balances rather than individual invoices. Which of the following most likely would be included with the client's confirmation letter?
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Q:
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B. Recipients usually respond only if they disagree with the information on the request.
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Once a CPA has determined that accounts receivable has increased because of slow collection in a "tight money" environment, the CPA would be likely to
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Q:
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B. Reviewing minutes of board meetings to determine the number of shares outstanding.
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In auditing long-term bonds payable, an auditor most likely would
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During an examination of a public company, the auditor should obtain written confirmation regarding bond transactions from the
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Q:
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Q:
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If the ratio of repairs and maintenance expense to property, plant, and equipment is higher than expected, which of the following is a plausible explanation?
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D. The company purchased an unusual amount of new equipment.