18. An engagement letter is used primarily to: (a) (b) Express an opinion on the financial statements. Ensure a clear contractual understanding of the services to be provided by the CPA. (c) Provide management representations to be included in the audit (d) Disclaim liability. 19. Van Dyke Brewery Corporation recorded sales through January 4, 20X5, dating them December 31,20x4. This situation is an examp of which of the following management assertions? (a) Completeness. (b) Cutoff. (c) Rights and obligations. (d) Occurrence. le of a violation Which of the following procedures would an auditor most likely perform for year end accounts receivable confirmations when the auditor did not receive replies to second requests? (a) Increase the assessed level of detection risk for the existence 20. assertion. (b) Intensify the study of the internal control structure concerning the (c) (d) revenue cycle. Review the cash receipts journal for the month prior to the year end. Inspect the shipping records documenting the merchandise sold to the debtors An auditor confirms a representative number of open accounts receivable as of December 31 and investigates respondents' exceptions and comments. By this procedure, the auditor would be most likely to learn of which of the following? (a) One of the sales clerks has not been preparing charge slips for credit 21. sales to family and friends. (b One of the iormation systiems control elerks has been removing all sales invoices applicable to his account from the data file The credit manager has misappropriated remittances from customers whose accounts have been written off One of the cashiers has been covering a personal embezzlement by lapping. (c) (d)