though the bank wil be relying on the audited financial statements in determining whether to
make the loan, the bank did not directly engage the auditing firm and accordingly, the report
should not be addressed to them.
QUESTION: 31
An auditor issued an audit report that was dual dated for a subsequent event occurring after the
original date of the auditor's report but before issuance of the related financial statements. The
auditor's responsibility for events occurring subsequent to the original report date was:

A. Limited to include only events occurring up to the date of the last subsequent event
referenced.
B. Limited to the specific event referenced.
C. Extended to subsequent events occurring through the later date.
D. Extended to include all events occurring since the original report date.

Answer(s): B
Explanation:
Choice "b" is correct. When an auditor issues a report that is dual dated for a subsequent event
occurring after the original date of the auditor's report, but before issuance of the related
financial statements, the auditor's responsibility for events occurring subsequent to the original
report date is limited to the specific event referenced. Choices "a", "c", and "d" are incorrect. The
auditor takes responsibility for only the specific event noted in the dual dating and no other
event occurring subsequent to the original report date.
QUESTION: 32
When an independent CPA is associated with the financial statements of a publicly held entity
but has not audited or reviewed such statements, the appropriate form of report to be issued
must include a(an):

A. Regulation S-X exemption.
B. Report on pro forma financial statements.
C. Unaudited association report.
D. Disclaimer of opinion.

Answer(s): D
Explanation:
Choice "d" is correct. When an accountant is associated with the financial statements of a public
entity, but has not audited or reviewed such statements, the accountant must issue a report
disclaiming any opinion on the statements.
Choices "a", "b", and "c" are incorrect since a disclaimer is required in this case.
QUESTION: 33
Which of the following auditing procedures most likely would assist an auditor in identifying
conditions and events that may indicate substantial doubt about an entity's ability to continue as
a going concern?

A. Inspecting title documents to verify whether any assets are pledged as collateral.
B. Confirming with third parties the details of arrangements to maintain financial support.

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