Question 13

Auditors should be alert to subsequent events _______.

		A. that may occur between the date of the financial statements and the date of the auditors report
		B. that may occur between the date of the auditors report and the next balance sheet date
		C. and report all immaterial findings to the Securities and Exchange Commission
		D. as they are particularly important to the year-end closing process

Question 14

Determining the likelihood of a loss contingency occurring and trying to estimate a reasonable amount for a future loss _______.

		A. should be determined by the client's legal counsel
		B. should be determined solely by the external auditor
		C. should be determined solely by the internal auditor
		D. involves significant judgment by management