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 .