Select correct answer multiple choice 5 questions.

BC 440 -QUIZ 7 7b 748/65 e Term A. B. C. D. E. 1. The primary source of information for litigation, claims, and assessments[LCA] is(the) : Client's lawyer. Court records. Client's management. Independent auditor. Internal audit staff. 2. For which of the following judgments may an independent auditor share responsibility with the client's internal auditor who is determined to be both competent and objective? B. c. D. Assessment of Inherent Risk Yes Yes No No Assessment of Control Risk Yes No Yes No 3. Which of the following procedures would an auditor most likely perform when applying audit procedures to the statement of cash flows[SCF]? A. Compare amounts included in the SCF to similar amounts in the prior year's SCF. B. Reconcile the cutoffbank statement to verify the accuracy of year-end bank balances. C. Vouch all bank transfers for the last week of the year and the first week of the subsequent year. D. Reconcile amounts included in the SCF to amounts and balances in the other financial statements. 4. After issuing a report , an auditor has no obligation to make continuing inquiries or perform other procedures concerning the audited financial statements ,unless: A. B. C. D. Information, which existed at the report date and which may affect the report, comes to the auditor's attention. Client management requests the auditor reissue the audit report in a document submitted to a third party that contains information in addition to the basic financial statements. Information about an event that occurred after the report has been issued comes to the auditor's attention. Final determination or resolution is made relative to a contingency that has been disclosed in the financial statements. 5. Which of the following events occurring after the issuance of an audit report would most likely cause the auditor to make further inquiries with respect to the previously issued financial statements? A. B. C. D. An uninsured natural disaster occurs that may affect the client's ability to continue as a going concern. A contingency is resolved that had been disclosed in the audited financial statements. New information is discovered concerning leasing transactions of the period under audit for which no disclosures were made. A major subsidiary is sold that accounts for 25% of the entity's consolidated net income.