ACC 562 EDU Education Terms/acc562edu.com ACC 562 EDU Education Terms/acc562edu.com | Page 20

66. The auditor will examine proceeds and trace them to recorded
amounts of the par value of common stock to determine that (Points:
4)
shares exist and have valid stock certificates.
proceeds have been properly distributed between common stock
and additional paid-in capital.
dividends have been issued in accordance with the stock indenture
agreement as approved by the board.
shareholders actually have the rights to shares issued by the
company in exchange for subscribed funds.
67. Which of the following is a tool that is best used by the audit team
to determine if the client has included all disclosures? (Points: 4)
Management representation letter.
GAAS.
Inquiry of the CFO.
Checklists.

68. The auditor is responsible for evaluating the likelihood of a client
continuing as a going concern for a reasonable period of time. A
reasonable period of time is (Points: 4)
one year from the audit report date.
one year from the last day of field work.