Which statement defines a Type 1 subsequent event? An event that provides evidence of conditions that did not exist at the date the financial statements. A Type I event requires an adjustment to the financial statements. An event that provides evidence of unreported earnings that arose after the date of the financial statements. An event that provides evidence of conditions that arose after the date of the financial statements An event that provides evidence of conditions that existed at the date of the D financial statements. A Type I event requires an adjustment to the financial statements. Question 16 2.5 Points An example of a factor that mitigates doubts about an entity's ability to continue as a going concern would be A ALL of these examples are mitigating factors. B a letter of guarantee from a parent company. the ability to raise additional funds through the issuance of more stock. D the ability to sell an unprofitable segment of the business. When is a disclaimer of opinion issued? A) When scope limitation is eliminated by alternative procedures B When a scope limitation is material and pervasive When a scope limitation is material but not pervasive D) When a misstatement is material and pervasive Question 18 2.5 Points What is a management representation letter? A A letter from auditor informing management about concerns. B A written statement by management provided to the auditor to confirm certain matters or to support other audit evidence. A written statement containing details of any verbal representations made by management during the course of the audit. D A letter from management to the auditor acknowledging management's responsibility for the preparation of the financial statements and details of any verbal representations made by management during the course of the audit