A number of key issues arise in completing an audit engagement. For each of the issues listed below, identify (1) why the auditor is critically concerned with the issue; and (2) the auditors basic responsibilities regarding the issue.

1. The management representation letter.

Primary reasons for concern:

Auditors basic responsibilities:

2. Subsequent events.

Primary reasons for concern:

Auditors basic responsibilities:

3. The audit clients status as a going concern.

Primary reasons for concern:

Auditors basic responsibilities:

4. Contingent liabilities.

Primary reasons for concern:

Auditors basic responsibilities: