1. The audit inquiry letter to the client's legal counsel should be mailed only by the.

A. client after review by the auditor's attorney.

B. client after the auditor has reviewed it for appropriate content.
C. auditor after preparation by the client and review by the auditor.
D. auditor's attorney after preparation by the client and review by the auditor.

2. The appropriate date for the client to specify as the effective date in the audit inquiry to a lawyer is
A. the balance sheet date.
B. the date of the audit inquiry itself.
C. the expected date of the completion of audit field work.
D. seven working days after the request is received by the lawyer.

3. Written client representation letters are normally signed by the

A. treasurer and the internal auditor.
B. president and the chairperson of the board.
C. chief executive officer and the chief financial officer.
D. corporate counsel and the audit committee chairperson.

4. Management representation letters should be dated as of the date of the:

A. auditor's report. C. latest interim financial statements.
B. balance sheet D. latest related party transaction.

5. Prior to the audit report release date, auditors have a responsibility to management's disclosure of subsequent
eventsuntil the
A. audit report release date C. following year's balance sheet date
B. auditors' report date D. year-end balance sheet date

Representation letter
6. A representation letter issued by a client:
A. is a substitute for testing.
B. does not reduce the auditor's responsibility
C. is essential for the preparation of the audit program.
D. reduces the auditor's responsibility only to the extent that it is relied upon.

7. The main purpose of management representations is to:

A. shift responsibility for financial statements from the management to auditors
B. impress on management its ultimate responsibility for the financial statements and disclosures
C. provide a substitute source of audit evidence for substantive procedures that auditors would
otherwiseperform
D. provide management an opportunity to make assertions about the quantity and valuation of
physicalinventory

8. Which of the following expressions is LEAST likely to be included in a client's representation letter?
A. Management has made available all financial statements and the related data.
B. Management acknowledges responsibility for illegal actions committed by employees.
C. No events have occurred subsequent to the balance sheet date that require adjustment to, or disclosurein.
the financial statements.
D. The company has complied with all aspects of contractual agreements that would have a material effect on
the financial statements in the event of noncompliance.

9. When considering the use of management's written representations as audit evidence about the completeness
assertion, an auditor should understand that such representations
A. are not parts of the evidential matter considered to support the assertion.
B. complement, but co not replace, substantive test designed to support the assertion.
C. replace reliance on internal accounting controls as evidence to support the assertion.
D. constitute sufficient evidence to support the assertion when considered in combination with relianceon
internal accounting controls.

10. Which of the following is ordinarily performed LAST in the audit examination?
A. Performing final test of control
B. Performing a review of subsequent events
C. Obtaining signed management representation
D. Securing a signed engagement letter from the client