1.Which of the following procedures would an auditor most likely perform to obtain evidence about the occurrence of subsequent events?

a)Inquiring of the entity's legal counsel concerning litigation, claims, and assessments arising after year-end.

b)Confirming bank accounts established after year-end.

c)Investigating changes in stockholders' equity occurring after year-end.

d)Recomputing a sample of large-dollar transactions occurring after year-end for arithmetic accuracy.

2. According to the ethical standards of the profession, which of the following acts is generally prohibited?

a)Issuing a modified report explaining a failure to follow a governmental regulatory agency's standards when conducting an attest service for a client. b)Accepting a contingent fee for representing a client in an examination of the client's federal tax return by an IRS agent. c)Retaining client records after an engagement is terminated prior to completion and the client has demanded their return. D)Revealing confidential client information during a quality review of a professional practice by a team from the state CPA society.