Question 10 (4 points) When management presents, "Accrued wages $200,000 as a current liability in the 12/31/XX F/S, management is making all of the following assertions except... All employees who are to be paid in the future actually exist. All wages owed to employees are included in the 12/31/XX balance of accrued wages. The company has an obligation to pay employees in the future for work performed prior to 12/31/XX All wages accrued will be paid to employees within one year Question 14 (4 points) An auditor is being sued by a client's bank. The bank requested audited financial statements in connection with the client's loan application. Later, the client defaulted on the loan, and it was discovered that the financial statements were materially misstated. The bank is a primary beneficiary because... The bank has a contractual relationship with the auditor. The bank is protected from loss due to materially misstated financial statements by the Securities Act of 1933. The bank is one of many banks that could have used the client's audited financial statements for a lending decision The bank requested the audited financial statements. Question 16 (4 points) When seeking to recover losses from an auditor who issued an unmodified opinion on materially misstated financial statements associated with an initial public offering Cie., Securities Act of 1933), the investor must establish, among other things, that. The auditor intended to deceive the investor The auditor was not independent and thus, failed to find the misstatement, A more experienced auditor would have discovered the misstatement, He or she experienced a loss after purchasing the stock. Question 18 (4 points) When auditing the balance of accounts receivable (A/R), the auditor learned that the client had extended the payment terms for all of its customers. Customers may pay their balance due over the next five years. This finding relates to the assertion of: Presentation & Disclosure of A/R Completeness of AR Existence of A/R Valuation of NR Question 24 (4 points) Information presented in the Management Representation Letter may be the sole source of evidence for the assertion of Presentation & Disclosure. True False