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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.
one year from the balance sheet date.
two years from the balance sheet date.
69. Rock School, Inc. has a matter of material litigation that is
threatened, but that has not gone to trial. The auditor's consideration
of such a matter will most likely include all of the following except
(Points: 4)
sending a letter to the client's attorneys for more information
discussions of the matter with the client and the client's insurance
adjuster.
confirmation with the harmed party regarding the amount that
will be claimed.
assessment of proper accrual or disclosure by the client in
accordance with SFAS No. 5.
70. When the financial statements contain a material departure from
GAAP that the auditor believes is justified, justification (Points: 4)
should appear in a footnote.
should appear in a paragraph added before the scope paragraph.