33. We have disclosed to you all known instances of non-compliance or suspected non-compliance with laws and regulations whose effects should be considered when preparing financial statements. The foregoing passage is most likely from a (an)

a. Attorney confirmation letter.

b. Letter of inquiry to an attorney.

c. Management representations letter.

Attestation report on the effectiveness of an entitys internal control.

34. The scope of an audit is not considered to be restricted when an attorney limits the response to a letter of inquiry about litigation, claims, and assessments to

a. Matters to which the attorney has given substantive attention in the form of legal representation.

b. An evaluation of the likelihood of an unfavorable outcome of the matters disclosed by the entity.

c. The attorneys opinion of the entitys historical experience in recent similar litigation.

d. The probable outcome of asserted claims and pending or threatened litigation.

35. Under the clarified auditing standards applicable to audits of private companies, "subsequent events" relevant to the auditor are defined as events that occur

a. After the entity's balance sheet date up to the date of the management representations letter, which has the same date as the auditors report.

b. After the entity's balance sheet date up to the report release date.

c. After the entity's balance sheet date up to the documentation completion date, which is defined to be 60 days after the report release date.

d. After the entity's balance sheet date up to the beginning of field work of next period's audit engagement.

36. On February 17, 20X2, a company had a fire that destroyed its plant. The building and equipment had a net carrying amount of $550,000 as of December 31, 20X1. The company anticipates that insurance proceeds of $300,000 will be received. The audit of the financial statements dated December 31, 20X1, was completed February 25, 20X2. How should the fire be reported in the December 31, 20X1, financial statements if the loss is viewed as material?

a. The loss of $250,000 should be recorded as of December 31, 20X1, and disclosed in the notes to the financial statements.

b. The value of the building and equipment should be written down to $300,000 as of December 31, 20X1, and the adjustment disclosed.

c. The December 31, 20X1, financial statements should disclose the effect of the fire with no financial statement adjustment.

d. The December 31, 20X1, financial statements should be adjusted without disclosure.