( Points : 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 .