1. To identify possible contingent liabilities, the auditor usually will: a. consider whether information obtained in other audit areas indicate the possibility of a contingent liability b. review internal revenue agent reports c. review minutes of the board of directors and audit committee d. perform all of the above procedures

2. A major procedure auditors rely on for evaluating known litigation and claims against a client is: a. examination of documents supporting cash disbursements after the end of the client's fiscal year b. confirmation with parties who have sued the client c. inquiry of the client's attorneys

d. inquiry of the chief executive officer

3. Subsequent events that require adjustment in the financial statements include: a. a lawsuit filed during the subsequent period against the company b. settlement of a multi-year regulatory investigation by paying a fine in an amount different than what is recorded in the financial statements c. a decline in the fair value of securities held for resale d. the uninsured loss of inventories as a result of fire

4. Management's disclosures in the financial statements with regard to a going concern uncertainty include: a. the principal conditions or events that raised substantial doubt about the entity's ability to continue as a going concern

b. management's evaluation of the significance of the conditions or events that raised substantial doubt

c. information about management's plans that alleviate the substantial doubt

d. all of the above

5. With regard to non-GAAP measures in financial statements: a. the SEC has established regulations with regard to such measures b. the SEC noted that non-GAAP measures should be relevant and reliable measures that do not mislead investors c. the SEC guidance emphasizes that when a company presents a non-GAAP measure it must present the most directly comparable GAAP measure with equal prominence d. all of the above statements about non-GAAP measures are correct