External Auditing Chapter 17

1. What are an auditors responsibilities and procedures as it relates to contingent liabilities?

2. What are the reporting requirements regarding contingent liabilities (probable / estimable)?

3. What is the primary purpose of a legal letter? Who supplies the information regarding pending litigation? Who is the legal letter sent to?

4. What is the purpose of examining lawyer invoices?

5. What actions does an auditor take if they are unable to obtain a legal letter?

6. Obtain an understanding of type I and type II subsequent events. Which require adjustment? Which require disclosure?

7. What is dual dating? How does dual dating affect the auditors report? How is the auditors responsibility affected by the decision to dual date or not?

8. What is the purpose of performing analytical procedures at the conclusion of an audit?

9. What is a management representation letter? When is it obtained? Who is it addressed to and who signs it?

10. What matters are required to be reported to those charged with governance?

11. What is the purpose of the management letter? Who is it addressed to? Who completes it?

12. What time period is the auditor required to search for subsequent events?

13. What are the auditors responsibilities after the audit report has been issued?