Using and Considering the Work of Experts, Other Auditors, and Internal Auditing

1. How does the external auditor understand and assess the work of internal auditing?

2. Why is there a need for the auditor to seek the help of an expert in an audit?

3. When does a principal auditor make no reference to another auditor? When is the principal auditor justified to make reference to other auditors in his report?

Completing the Audit and Post-Audit Responsibilities

1. What is the purpose of dual dating an audit report?

2. What should an auditor do when he or she believes that substantial doubt exists as to whether an entity is a going concern?

3. Why does the auditor obtain a representation letter from management?

4. How can well-prepared management representation letters lead to additional client services besides audit engagement?

additional 2 questions (Letters Only)

1.Insurance risk includes which of the following?

a. lapse or persistency risk

b. expense risk

c. financial risk

d. pure risk

2.Water Insurance Co. issues a group of insurance contracts on Dec. 19, 20x1. On that day, the entity determines that the group of insurance contracts is onerous. The coverage period of the group starts on Jan. 1, 20x2 and the first premium from a policyholder in the group is due Dec. 30, 20x2. When is the recognition date of the group of insurance contract issued?

a.Dec. 19, 20x1

b.Dec. 30, 20x1

c.Jan. 1, 20x2

d. Jan. 4, 20x2