Question 10

• A model using certain ratios of an organization that evaluates the likelihood of a bankruptcy is often used by auditor as one tool to determine whether there is a going concern issue. What is that tool?

I.	Crescent wrench.
II.	Disclosure checklist.
III.	Management representation letter.
IV.	Altman Z-Scores.

Question 12

• The purposes of the management representation letter are to help promote audit quality. List the three (3) purposes of the letter.