As the audit of Halley Enterprises draws to its conclusion, the auditors, Edmund CPAs are discussing and preparing a document to deliver significant audit findings to the firms senior management. Which of the following are potential findings that an auditor may include in such a communication?(Select all that apply.) (min two of them are right)

The auditors assessment of the appropriateness of significant accounting policies currently being used by management and the firm.

A record of significant findings or issues that the auditors noted during the course of the audit.

A list of all misstatements that the client corrected, having been alerted to them by the auditors.

The types of substantive and analytical procedures as part of the audit, for managements records.

As the audit of Faircloth Industries reaches its conclusion, Arthur, the audit partner with overall responsibility for the engagement is discussing the management representation letter with one of his audit staff associates. The audit staff associate asks Arthur to explain a little more about the purpose and content of this letter. Which of the following statements by Arthur are correct? (Select all that apply.) (min )2 answer are right

The purpose of the management representation letter is to help the audit firm perform fewer procedures, as the firm can instead rely on the letter.

The letter is delivered to the clients management by the audit firm, and draws attention to all deficiencies noted in the audit.

The letter is typically drafted by the auditors and should confirm matters related to the audit.

The letter does not absolve the auditor from his or her responsibility for identifying subsequent events.

Janice and Ray are working on the audit of Bloom LLC, and have heard the term subsequent events mentioned in a recent meeting. At lunch one day, Janice asks Ray if he understands what subsequent events are, and why the auditors pay attention to them? Which of the following are correct responses by Ray to this question? (Select all that apply.) (min two are right)

Subsequent events are best described as events that occurred between the date of the financial statements and the auditors report.

Type I subsequent events are events that existed at the balance sheet date, and require the financial statements to be adjusted. Subsequent events are classified as Type I and Type II events. Type II events always require disclosure in the financial statements.

Type II subsequent events typically occur after the date of the financial statements, and require the auditors to disclaim an opinion on the financial statements.