7-3 17-22 During an audit engagement, Harper, CPA, has satisfactorily completed an examina- tion of accounts payable and other liabilities and now plans to determine whether there are any loss contingencies arising from litigation, claims, or assessments. Required: What audit procedures should Harper follow with respect to the existence of loss contingencies arising from litigation, claims, and assessments? Do not discuss reporting requirements. (AICPA, adapted) 7-7 17-24 Namiki, CPA, is auditing the financial statements of Taylor Corporation for the year ended December 31, 2018. Namiki plans to complete the fieldwork and sign the auditor's report about March 10, 2019. Namiki is concerned about events and transactions occurring after December 31, 2018, that may affect the 2018 financial statements. Required: a. What general types of subsequent events require Namiki's consideration and evaluation? b. What auditing procedures should Namiki consider performing to gather evidence concerning subsequent events? (AICPA, adapted) 17-8 17-26 Arenas, an assistant accountant with the firm of Gonzales & Ramirez, CPAs, is audit- ing the financial statements of Tech Consolidated Industries, Inc. The firm's audit program calls for the preparation of a written management representation letter. Chapter 17 Completing the Audit Engagement 587 Required: a. In an audit of financial statements, in what circumstances is the auditor required to obtain a management representation letter? What are the purposes of obtaining the letter? b. To whom should the representation letter be addressed, and when should it be dated? Who should sign the letter, and what would be the effect of his or her refusal to sign the letter? c. In what respects may an auditor's other responsibilities be relieved by obtaining a management representation letter? (AICPA, adapted)