Question #1: Alan Trammel, the partner on the Magic Inc. audit called a meeting of his engagement staff during the engagement wrap-up. Which one of the following areas would be the least likely to be covered during the wrap up?

a. performing analytical procedures on the adjusted financial statements

b. preparation of budgets for the next years audit

c. removal of all unnecessary documentation from the engagement files

d. consideration of the amount used for materiality

Question #2:

For contingent liabilities, an auditor is required to review which one of the following?

a. minutes of meetings of those charged with governance

b. correspondence with the companys bank

c. payroll expense accounts for unexpected fluctuations

d. invoices paid after year-end