After Fieldwork Audit Procedures Are Completed, a Partner of the CPA

question 21

Multiple Choice

After fieldwork audit procedures are completed, a partner of the CPA firm who has not been involved in the audit performs a second or wrap-up review of the working papers. This second review usually focuses on

• A) The audit report, financial statements, and footnotes for consistency.
• B) Irregularities involving the entity's management and its employees.
• C) The materiality of the adjusting entries proposed by the audit staff.
• D) The communication of internal control weaknesses to those charged with governance.

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Definitions:

Note Payable

A written promise to pay a specific amount of money, usually with interest, by a certain date.

Accounts Receivable

The money owed to a company by its customers for goods or services that have been delivered or used but not yet paid for.

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or within a business’s normal operating cycle if longer than a year.