ACC 562 EDU Great Stories /acc562edu.com ACC 562 EDU Great Stories /acc562edu.com | Page 4

True
False
17. Contingencies are considered by the auditor in relation to the
SFAS No. 5 criteria to determine whether material contingencies
exist with the client and, if so, that they are properly accrued or
disclosed. (Points: 4)
True
False
18. An example of a Type II Subsequent Event includes the
settlement two months after year-end of a liability for an amount
well in excess of the amount that was accrued at year-end. (Points:
4)
True
False
19. A report on agreed-upon procedures issued by accountants
provides the lowest form of attestation assurance. (Points: 4)
True
False
20. The need for assurance services arises for all of the following
reasons EXCEPT: (Points: 4)
potential bias in providing information.
closeness between a user and the organization.
complexity of the processing systems.
remoteness between a user and the organization.