40. OP 41. 42 42. 43. Which of the following management responsibilities is not established under PCAOB standards? a. To present a written assessment of the effectiveness of the company's internal control over financial reporting as of the end of the company's most recent fiscal year. b. To accept responsibility for the effectiveness of the company's internal control over financial reporting. c. To evaluate the effectiveness of the company's internal control over financial reporting using suitable criteria. d. To perform cost-benefit analysis with respect to internal controls relating to assertions having a material effect on the financial statements. e. To support it's evaluation of internal control with sufficient evidence, including documentation. Which of the following material events occurring subsequent to the balance sheet date would require an adjustment to the financial statements before they could be issued? a. Sale of long-term debt or capital stock. b. Loss of a plant as a result of a flood. c. Major purchase of a business which is expected to double the sales volume. d. Settlement of litigation in excess of the recorded liability. Which of the following is not used by auditors to establish the completeness of recorded assets? a. Assessing control risk. b. Tracing from source documents to entries in the accounting records. c. Performing analytical procedures. d. Vouching transactions. After auditors have completed testing controls and drawn a conclusion about control risk. a. they make decisions about the nature and timing of substantive testing b. they are ready to issue the audit opinion c. they make decisions about the nature, timing, and extent of substantive testing d. they should withdraw if control risk is assessed as high