internal control that requires that "checks are pre-numbered and accounted for" satisfies the 33) The objective of? 4. Completeness B. Classification c. Posting and summarization D. Accuracy e following statements describes a stock transfer agent? 34) Which of th A. An outside per rson engaged by a corporation to make sure its stock is not over-issued and authorized n engaged by a corporation to maintain stockholder records- they keep lists d the number of shares outstanding and they are responsible for disbursing n outside person of investors an dividend:s B. A An internal employee that verifies stock issuance authorizations made by the board of C. directors None of the above D. 35) Whenever subsequent events are used to evaluate the amounts included in the statements, care must be taken to distinguish between conditions that existed at the balance sheet date and those that come into being after the balance sheet date. The subsequent information should NOT be incorporated directly into the statements if the conditions causing the change in valuation: A. Took place before the balance sheet date. B. Did not take place until after the balance sheet date c. occurred both before and after the balance sheet date. D. Are reimbursable through insurance policies. 36) Which of the following is NOT an item that is typically included in a standard "inquiry of attorne letter? A request for the identification of any unlisted pending or threatened legal actions or a A. B. A request that the attorney furnish information about any pending litigation or unasserte C. A statement informing the attorney of his/her responsibility to notify management ofeE statement that the client's list is complete claims, the likelihood of an unfavorable outcome and an estimate of the amount or range the potential loss matters requiring disclosure in the financials pending lawsuit and to respond directly to the auditor est that the attorney opine on the proper accounting treatment associated with 37) Which of the following represent a subsequent discovery of facts which would N auditor response? A. Discovery of management's intent to increase selling prices in the future B. Discovery of the inclusion of material nonexistent sales C. Discovery of the omission of a material footnote D. Discovery of the failure to write off material obsolete inventory 38) Auditing standards require the auditor to communicate all management frauds and illega the audit committee A. Only if the act is material B. Regardless of materiality C. Only if the act is highly material D. Only if the act is immaterial Page 7 of 10
