Select the necessary words from the list of possibilities to complete the following statements. Statements Answer 1. Revenue and expense accounts are audited in conjunction with related accounts balance sheet 2 Material fluctuations revealed by analytical procedures should be investigated to determine whether they are indicative of material in the financial statements 3. The department of the company should authorize changes in employee pay rates 4. 5. When paper paychecks are issued, the company's should distribute them to the employees of the company is a list of all specific disclosures required by financial accounting standards The primary purpose of the is to have the client's principal officers acknowledge that they are primarily responsible for the fairness of the financial statements 6 7. The auditors should obtain a letter from the client's attomes describing 8 In estimating the total likely misstatement in the financial statements, the auditors should combine misstatements, projected misstatements, and judgmental misstatements 9 If the auditors conclude that the total misstatement in the financial statements is material, they should request management to adjust the financial statements or issue an) opinion 10 An event occurring after the date of the balance sheet, but prior to completion of the audit, is called a 11 Financial statements that give effect to a subsequent event as though the event had occurred at the balance sheet date are known as financial statements tements. Answer balance sheet her they are ates. he employees balance sheet claims, litigation, and assessments disclosure checklist at they are factual (known) mbine ey should called a at the balance tements. Answer balance sheet her they are ates. human resources ("HR" or personnel) ne employees misstatements paymaster pro forma hat they are qualified or adverse representation letter mbine ey should s called a ed at the balance statements. Answer balance sheet whether they are UVU UTL y rates. paymaster co the employees pro forma qualified or adverse e that they are representation letter subsequent event combine they should is called a rred at the balance