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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.
should appear in the opening paragraph.
should appear in a paragraph added before the opinion
paragraph.
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ACC 562 Midterm Exam Guide
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