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NEW QUESTION: 1
An auditor's engagement letter most likely would include:
A. The auditor's preliminary assessment of the risk factors relating to misstatements arising from
fraudulent financial reporting.
B. Management's acknowledgment of its responsibility for maintaining effective internal control.
C. A reminder that management is responsible for illegal acts committed by employees.
D. A request for permission to contact the client's lawyer for assistance in identifying litigation, claims, and
assessments.
Answer: B
Explanation:
Explanation/Reference:
Explanation:
Choice "A" is correct. An understanding with the client should be established regarding management's
responsibilities, which include establishing and maintaining effective internal control over financial
reporting. This is generally documented in an engagement letter.
Choice "B" is incorrect. During the planning process, the auditor must document evidence of the
assessment of the risk of material misstatement due to fraud. This information would be included in the
audit documentation, not in the engagement letter.
Choice "C" is incorrect. Management is not responsible for illegal acts committed by employees, and
therefore the engagement letter would not include such a statement.
Choice "D" is incorrect. The auditor generally does not contact the client's lawyer directly; rather, a letter is
sent from management to the lawyer requesting corroboration of information related to litigation, claims,
and assessments. The engagement letter therefore would not include a request for permission to contact
the attorney.

NEW QUESTION: 2

A. Option A
B. Option D
C. Option C
D. Option B
Answer: A

NEW QUESTION: 3
Refer to the exhibit.

Which configuration issue is preventing the OSPF neighbor relationship from being established between the two routers?
A. R2 should have its network command in area 1
B. R2 is using the passive-interface default command
C. R1 has an incorrect network command for interface Gi1/0
D. R1 interface Gil/0 has a larger MTU size
Answer: D