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 . 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