This Question Will Represent a Statement, Question, Excerpt, or Comment

question 679

Multiple Choice

This question will represent a statement, question, excerpt, or comment taken from various parts of an auditor's documentation file. Letter choices A-P represent a list of the likely sources of the statement, question, excerpt, or comment. Select, as the best answer for each item, the most likely source. Select only one source for each item. Was the difference of opinion on the accrued pension liabilities that existed between the engagement personnel and the actuarial specialist resolved in accordance with firm policy and appropriately documented?

• A) Practitioner's report on management's assertion about an entity's compliance with specified requirements.
• B) Auditor's communications on significant deficiencies in internal control.
• C) Audit inquiry letter to legal counsel.
• D) Lawyer's response to audit inquiry letter.
• E) Communication from those charged with governance to the auditor.
• F) Auditor's communication to those charged with governance (other than with respect to significant deficiencies in internal control
• G) Report on the application of accounting principles.
• H) Auditor's engagement letter.
• I) Letter for underwriters.
• J) Accounts receivable confirmation request.
• K) Request for bank cutoff statement.
• L) Explanatory paragraph of an auditor's report on financial statements.
• M) Partner's engagement review notes.
• N) Management representation letter.
• O) Successor auditor's communication with predecessor auditor.
• P) Predecessor auditor's communication with successor auditor.

---

Definitions:

Continuous Improvement

An ongoing effort to improve products, services, or processes by making incremental improvements over time or implementing significant changes.

Formal Retreat

An organized, often offsite, event where members of an organization come together to discuss strategic planning, team building, or problem-solving away from daily work distractions.

Team Building

The process of creating a cohesive group, improving relationships and function through activities and exercises designed to enhance teamwork.

Amiable Entrants

Newcomers or participants in an environment or situation who are friendly, agreeable, and eager to establish positive relationships.