Question

1. The management representation letter date should coincide with the:

Date of the auditor's report.

Balance sheet date.

Date of the latest subsequent event referred to in the notes to the financial statements.

2. The Aged Accounts Receivable Trial Balance

	Serves as the detailed Accounts Receivable subsidiary ledger.
	Is a useful tool in determining the allowance for doubtful accounts.
	Is used by accounts receivable personnel to assist in cash collections.
	All of the above.

Date of the engagement letter.

3. What is the relation, if any, between reliance on internal controls testing and substantive testing of account balances?

Direct.

Inverse.

Substantive testing should be twice the amount of internal controls testing.

None – they are independent of each other.

4. During the rollforward period for verifying Accounts Receivable, the auditor would perform which of the following:

Internal controls testing.

Substantive detail testing.

Substantive analytical testing.

All of the above.

5. Your CPA firm is auditing a client with a December 31, 2020 year-end. Your firm expects to complete the audit fieldwork on March 15, 2021. In practice, the letters of audit inquiry should be sent to the client's external legal counsel on approximately

	September 1, 2020
	January 1, 2021
	March 1, 2021
	March 15, 2021

Answer 1

1) Correct Answer is a) Date of auditor's report as the management's representation letter must be dated same as on completion of audit as per ISA580. So date of auditor's report is correct answer.

option b) is incorrect because Balance sheet date is the date which comes before auditor's report.
option c) is incorrect because latest susequent event referred to in notes to financial statements are also dates which comes before date of auditor's report.
option d) is incorrect because date of engagement letter too is date which comes before date of auditor's report.

Since no particular question was marked to be answered, first from the list of questions has been answered as per GUIDELINES.