1. During an audit engagement, Harper, CPA, has satisfactorily completed an examination of accounts payable and other liabilities and now plans to determine whether any loss contingencies are arising from litigation, claims, or assessments -

Required: What audit procedures should Harper follow concerning the existence of loss contingencies arising from litigation, claims, and assessments?

2. Namiki, CPA, is auditing the financial statements of Taylor Corporation for the year ended December 31, 2018. Namiki plans to complete the fieldwork and sign the auditor's report about March 10, 2019. Namiki is concerned about events and transactions occurring after December 31, 2018, that may affect the 2018 financial statements.

Required:

a. What general types of subsequent events require Namiki's consideration and evaluation?

b. What auditing procedures should Namiki consider performing to gather evidence concerning subsequent events?

3 . Arenas, anassistantaccountant withthe firm ofGonzales &Ramirez, CPAs, is auditing the financial statements of Tech Consolidated Industries, Inc. The firm's audit program calls for thepreparation of a written management representation letter.

Required:

a.Inanauditoffinancialstatements,inwhatcircumstancesistheauditorrequired to obtain a management representation letter?

What are the purposesof obtaining the letter?

b.Towhomshouldtherepresentationletterbeaddressed,andwhenshoulditbe dated? Who should sign the letter, and what would be the effect of his or her refusal to sign the letter?

c.Inwhatrespectsmayanauditor'sotherresponsibilitiesberelievedbyobtaininga management representation letter?