Multiple choice

Which of the following statements is/are true regarding direct confirmation of accounts receivable? (1) Responses from the customer must be returned directly to the client. (2) Under the positive method the customer only replies if the amount stated is agrees with customer's records. A. (1) only B. (2) only C. (1) and (2) D. Neither (1) nor (2) As the audit senior on the yearend audit of Z Co, you have instructed the audit junior to obtain and inspect supporting sales contracts for large sales transactions. Which of the following assertions are you seeking to test with this audit procedure? A. Cut-off B. Accuracy C. Occurrence D. Completeness As part of the review stage of an audit, the auditor will consider subsequent events. Up to which date does the auditor have an active responsibility to perform procedures designed to identify events? A. The reporting date B. The date of the auditor's report C. The date of issue of the financial statements. D The date of approval of the financial statements T Co has a yearend of 31 July 20X4. The auditor completed the audit work on 10 September 20X4 and the auditor's report was signed on 30 September 20X4. The financial statement were issued on 1 November 20X4. Which of the following would be the most appropriate date for the directors to sign the written representations letter? A. 31 July 20X4 B. 10 September 20X4 C. 30 September 20X4 D. 1 November 20X4 The auditor of Q Co has completed the audit and has concluded that sufficient appropriate evidence has been obtained, which confirms that the financial statements are not materially misstated. Which form of audit opinion will the auditor issue? A. Adverse opinion B. Qualified opinion C. Unmodified opinion D. A disclaimer of opinion