Auditing MidTerm

An audit opinion that states that the financial statements are not fairly presented is referred to as a(n) A) Adverse opinion. B) Limited assurance opinion. C) Negative opinion. D) Unqualified opinion.

A. Adverse opinion

A summary of findings rather than assurance is most likely to be included in a(n): A) Agreed-upon procedures report. B) Compilation report. C) Examination report. D) Review report.

A. Agreed-upon procedures

In the United States, the hiring of a company's external auditors of a public company is most likely the responsibility of the A) Audit committee. B) Board of directors. C) Management. D) Public Company Accounting Oversight Board.

A. Audit committee

Which of the following is least likely to be considered a risk assessment procedure relating to internal control? A) Counting marketable securities at year-end. B) Inquiries of client personnel. C) Inspecting documents and reports. D) Observing the application of specific controls.

A. Counting marketable securities at year-end.

Which of the following would be least likely to be considered a benefit of effective internal control? A) Enhancing profitability. B) Restricting access to assets. C) Detecting ineffectiveness. D) Ensuring authorization of transactions.

A. Enhancing profitability.

What type of transactions ordinarily have high inherent risk because they involve management judgments or assumptions in formulating accounting balances? A) Estimation. B) Nonroutine. C) Qualified. D) Routine.

A. Estimation

An analytical procedure example is the comparison of: A) Financial ratios of the current year to previous years. B) Recorded amounts of major disbursements with appropriate invoices. C) Results of a statistical sample with the expected characteristics of the actual population. D) EDP generated data with similar data generated by a manual accounting system.

A. Financial ratios of the current year to previous years.

Which of the following best describes the problem with the use of published industry averages for analytical procedures? A) Lack of comparability. B) Lack of sufficiency. C) Lack of accuracy. D) Lack of availability.

A. Lack of comparability

When conducting fieldwork for a physical inventory, an auditor is least likely to perform which of the following steps using a generalized audit software package? A) Observing inventory. B) Selecting sample items of inventory. C) Analyzing data resulting from inventory. D) Recalculating balances in inventory reports.

A. Observing inventory.

Which of the following is not one of the assertions made by management about an account balance? A) Relevance. B) Existence. C) Valuation. D) Rights and obligations.

A. Relevance

Tests for unrecorded assets typically involve tracing from: A) Source documents to recorded journal entries. B) Source documents to observations. C) Recorded journal entries to documents. D) Recorded journal entries to observations.

A. Source documents to recorded journal entries.

Which of the following matters is generally included in an auditor's engagement letter? A) The financial accounting framework that will be applied. B) Factors to be considered in establishing preliminary judgments about materiality. C) Management's liability for all illegal acts committed by its employees. D) The auditor's responsibility to obtain negative assurance relating to non-compliance with laws and regulations.

A. The financial accounting framework that will be applied.

The AICPA Code of Professional Conduct will ordinarily be considered to have been violated when the CPA represents that specific consulting services will be performed for a stated fee and it is apparent at the time of the representation that the: A) There was a referral fee that was not disclosed to the client. B) Actual fee would be substantially lower than the fees charged by other CPAs for comparable services. C) Fee was a competitive bid. D) CPA would not be independent.

A. There was a referral fee that was not disclosed to the client.

A CPA wishes to use a representation letter as a substitute for performing other audit procedures. Doing so: A) Violates professional standards. B) Is acceptable, but should only be done when cost justified. C) Is acceptable, but only for non-public clients. D) Is acceptable and desirable under all conditions.

A. Violates professional standards.

Ordinarily, a public company audit report must be addressed to: Board of Directors Shareholders A. Yes Yes B. Yes No C. No Yes D. No No

A. Yes Yes

Under which act (or acts) may criminal charges against a CPA be filed? Securities Act of 1933 Securities Exchange Act of 1934 A. Yes Yes B. Yes No C. No Yes D. No No

A. Yes Yes

List the four types of auditors' opinion?

Adverse Disclaimer Qualified Unmodified or Unqualified

Audits of which of the following organizations are subject to the Sarbanes-Oxley Act? All public companies

All public companies

An auditor's objective in the performance of audit procedures is to obtain evidence that either supports or refutes management assertions. Which of the following is a procedure designed to achieve that objective?

Analytical procedures

Audit documentation should include:

Audit plan, documentation of control risk, client representation letter

Assume that a CPA firm was negligent but not grossly negligent in the performance of an engagement. Which of the following plaintiffs probably would not recover losses proximately caused by the auditors' negligence? A) A loss sustained by a client in a suit brought under common law. B) A loss sustained by a lender not in privity of contract in a suit brought in a state court which adheres to the Ultramares v. Touche precedent. C) A loss sustained by initial purchasers of stock in a suit brought under the Securities Act of 1933. D) A loss sustained by a bank named as a third-party beneficiary in the engagement letter in a suit brought under common law.

B. A loss sustained by a lender not in privity of contract in a suit brought in a state court which adheres to the Ultramares v. Touche precedent.

Which of the following is not an assertion relating to classes of transactions? A) Accuracy. B) Adequacy. C) Cutoff. D) Classification.

B. Adequacy

Prepares the CPA exam? A. Sarbanes-Oxley Act B. American Institute of Certified Public Accountants C. Public Company Accounting Oversight Board D. State Boards of Accountancy E. Federal Accounting Standards Advisory Board

B. American Institute of Certified Public Accountants

Which of the following is accurate, as indicated in the principles underlying an audit? A) Management is expected to provide the auditors with all needed evidence prior to the beginning of audit work. B) An auditor is unable to obtain absolute assurance that the financial statements are free from material misstatement. C) Auditors are responsible for having appropriate competence to perform the audit without the assistance of outside specialists. D) Management is responsible for preparing accurate financial statement amounts, while auditors are responsible for auditing those amounts and for preparing note disclosures related to those amounts.

B. An auditor is unable to obtain absolute assurance that the financial statements are free from material misstatement

AICPA independence requirements suggest that a CPA should evaluate whether a particular threat to independence would lead a reasonable person, aware of all the relevant facts, to conclude that: A) A questioning mind reveals doubt as to independence. B) An unacceptable risk of non-independence exists. C) The accountant is definitely not independent. D) There is substantial cause for a legal finding of non-independence.

B. An unacceptable risk of non-independence exists

Which of the following is most likely to be considered an analytical procedure? A) Testing purchases at year-end to determine they were recorded in the proper period. B) Comparing inventory balances to recent sales activities. C) Selecting a sample of year-end receivables for confirmation. D) Reconciling physical counts of inventory to perpetual records.

B. Comparing inventory balances to recent sales activities.

A system in which each department member is responsible for the development and execution of the computer application that he or she uses is referred to as: A) Stand-alone computing. B) End user computing. C) Distributed computing. D) Decentralized computing.

B. End user computing.

Auditors must assess fraud risk on every audit and respond to the risks that are identified. Which of the following is not a procedure required to further address the fraud risk of management override of internal control? A) Reviewing accounting estimates for biases. B) Examining physical controls over assets. C) Evaluating the business rationale for significant unusual transactions. D) Examining journal entries and other adjustments for evidence of fraud.

B. Examining physical controls over assets.

If a CPA recklessly departs from the standards of due care when conducting an audit, the CPA will be liable to third parties who are unknown to the CPA based on A) Negligence. B) Gross negligence. C) Strict liability. D) Criminal deceit.

B. Gross negligence

In their consideration of a client's IT controls, the auditors will encounter general controls and application controls. Which of the following is an application control? A) The operations manual. B) Hash total. C) Systems documentation. D) Control over program changes.

B. Hash total

Which of the following is not an example of a likely adjustment in the auditors' overall audit approach when significant risk is found to exist? A) Apply increased professional skepticism about material transactions. B) Increase the assessed level of detection risk. C) Assign personnel with particular skill to areas of high risk. D) Obtain increased evidence about the appropriateness of management's selection of accounting principles.

B. Increase the assessed level of detection risk.

Which of the following factors would most likely cause a CPA to decide not to accept a new audit engagement? A) Lack of understanding of the potential client's internal auditors' computer-assisted audit techniques. B) Management's disregard for internal control. C) The existence of related party transactions. D) Management's attempt to meet earnings per share growth rate goals.

B. Management's disregard for internal control.

Which of the following is not a broad category of threat to auditor independence? A) Familiarity. B) Positive work relationship. C) Financial self interest. D) Undue Influence.

B. Positive work relationship

Which of the following is not a factor that is considered a part of the client's overall control environment? A) The organizational structure. B) The information system. C) Management philosophy and operating style. D) Board of directors.

B. The information system.

An audit provides reasonable assurance of detecting which of the following types of material illegal acts? Direct Effect Without a Direct Effect A. Yes Yes B. Yes No C. No Yes D. No No

B. Yes No

Which of the following is least likely to impair a CPA firm's independence with respect to a nonpublic audit client in the Chicago office of a national CPA firm? A) A partner in the Chicago office owns an immaterial amount of stock in the client. B) A partner in the Milwaukee office owns 8% of the client's stock. C) A partner in the Chicago office, who does not work on the audit, previously served as controller for the audit client. D) A partner in the Pittsburgh office is also the vice president of finance for the audit client.

C. A partner in the Chicago office, who does not work on the audit, previously served as controller for the audit client.

Usernames, passwords, and identity cards are examples approaches to: A) Processing controls. B) Manual input controls. C) Authorization. D) Firewalls.

C. Authorization

Which of the following is most likely to include user group development and execution of certain computer applications? A) Telecommunication transmission systems. B) Database administration. C) End user computing. D) Electronic data interchange systems.

C. End user computing

Which of the following matters would an auditor most likely consider to be a significant deficiency to be communicated to the audit committee? A) Management's failure to renegotiate unfavorable long-term purchase commitments. B) Recurring operating losses that may indicate going concern problems. C) Evidence of a lack of objectivity by those responsible for accounting decisions. D) Management's current plans to reduce its ownership equity in the entity.

C. Evidence of a lack of objectivity by those responsible for accounting decisions.

Formed to improve standards of financial accounting for state and local government entities? A. American Institute of Certified Public Accountants B. Public Company Accounting Oversight Board C. Government Accounting Standards Board D. Federal Accounting Standards Advisory Board E. Financial Accounting Standards Board

C. Government Accounting Standards Board

The major components of internal control include all of the following, except: A) Risk assessment. B) The control environment. C) Internal auditing. D) Control activities.

C. Internal auditing

Confirmation would be most effective in addressing the existence assertion for the: A) Addition of a milling machine to a machine shop. B) Payment of payroll during regular course of business. C) Inventory held on consignment. D) Granting of a patent for a special process developed by the organization.

C. Inventory held on consignment.

Which of the following must be proven by the plaintiff in a case against a CPA under the Section 11 liability provisions of the Securities Act of 1933? A) The CPA knew of the misstatement. B) The CPA was negligent. C) Material misstatements were contained in the financial statements. D) The unqualified opinion contained in the registration statement was relied upon by the party suing the CPA.

C. Material misstatements were contained in the financial statements.

In the consideration of internal control, the auditor is basically concerned that it provides reasonable assurance that: A) Management cannot override the system. B) Operational efficiency has been achieved in accordance with management plans. C) Misstatements have been prevented or detected. D) Controls have not been circumvented by collusion.

C. Misstatements have been prevented or detected.

Primary responsibility for the financial statements lies with: Auditors Management A. Yes Yes B. Yes No C. No Yes D. No No

C. No Yes

The auditors are planning an audit engagement for a new client. The business of the client is unfamiliar to the auditors. Which of the following would be the most useful source of information for the auditors when they are trying to obtain a general understanding of audit problems that could be encountered? A) Client manuals of accounts and charts of accounts. B) AICPA Industry Audit Guides. C) Prior-year working papers of the predecessor auditors. D) Latest annual and interim financial statements issued by the client.

C. Prior-year working papers of the predecessor auditors.

Issue auditing standards for public companies? A. American Institute of Certified Public Accountants B. Public Company Accounting Oversight Board C. Government Accounting Standards Board D. Federal Accounting Standards Advisory Board E. Financial Accounting Standards Board

C. Public Company Accounting Oversight Board

Which of the following is a basic approach often used by auditors to evaluate the reasonableness of accounting estimates? A) Confirmation. B) Observation. C) Reviewing subsequent events or transactions. D) Analyzing corporate organizational structure.

C. Reviewing subsequent events or transactions.

Assertions with high inherent risk are least likely to involve: A) Complex calculations. B) Difficult accounting issues. C) Routine transactions. D) Significant judgment by management.

C. Routine transactions.

An audit independence issue might be raised by the auditor's participation in consulting services engagements. Which of the following statements is most consistent with the profession's attitude toward this issue? A) Information obtained as a result of a consulting services engagement is confidential to that specific engagement and should not influence performance of the attest function. B) The decision as to loss of independence must be made by the client based on the facts of the particular case. C) The auditor should not make management decisions for an audit client. D) The auditor who is asked to review management decisions, is also competent to make these decisions and can do so without loss of independence.

C. The auditor should not make management decisions for an audit client.

Auditors must obtain written client representations that typically should be signed by: A) The president and the chairperson of the board. B) The treasurer and the internal auditor. C) The chief executive officer and the chief financial officer. D) The corporate counsel and the audit committee chairperson.

C. The chief executive officer and the chief financial officer.

Which of the following is not a primary purpose of audit working papers? A) To coordinate the examination. B) To assist in preparation of the audit report. C) To decrease the need for substantive procedures. D) To provide evidence of the audit work performed

C. To decrease the need for substantive procedures.

By definition, proper professional skepticism on an audit requires: Questioning mind Subjective assessment of audit evidence A. No No B. No Yes C. Yes No D. Yes Yes

C. Yes No

Which of the following is not an objective that is intended to be achieved by proper audit documentation?

Comparing actual time spent on the engagement to engagement budgets.

Which of the following is not one of the seven categories of threats to independence identified by the AICPA in its conceptual framework on independence?

Conflict of interest threat

Which of the following court cases highlighted the need for obtaining engagement letters for professional services? A) Ultramares v. Touche. B) Rosenblum v. Adler. C) Hochfelder v. Ernst. D) 1136 Tenants Corporation v. Rothenberg.

D. 1136 Tenants Corporation v. Rothenberg

A CPA should maintain objectivity and be free of conflicts of interest when performing: A) Audits, but not any other professional services. B) All attestation services, but not other professional services. C) All attestation and tax services, but not other professional services. D) All professional services.

D. All professional services

The risk associated with survivability and profitability is referred to as A) Information risk. B) Inherent risk. C) Relative risk. D) Business risk.

D. Business Risk

Which of the following is not ordinarily a procedure for documenting an auditor's understanding of internal control for planning purposes? A) Checklist. B) Flowchart. C) Questionnaire. D) Confirmation.

D. Confirmation

A CPA's duty of due care to a client most likely will be breached when a CPA: A) Gives a client an oral report instead of a written report. B) Gives a client incorrect advice based on an honest error of judgment. C) Fails to give tax advice that saves the client money. D) Fails to follow generally accepted auditing standards.

D. Fails to follow generally accepted auditing standards.

Develop accounting standards for the U.S. Government? A. American Institute of Certified Public Accountants B. Public Company Accounting Oversight Board C. Government Accounting Standards Board D. Federal Accounting Standards Advisory Board E. Financial Accounting Standards Board

D. Federal Accounting Standards Advisory Board

Which of the following is most likely to violate the AICPA Code of Professional Conduct? A) Accepting audit fees fixed by a public authority. B) Submitting a competitive bid to a potential audit client. C) Performing professional services relating to judicial proceedings. D) Issuing the current year audit report when fees for the past year audit remain uncollected.

D. Issuing the current year audit report when fees for the past year audit remain uncollected.

An audit performed in accordance with generally accepted auditing standards should: A) Be expected to provide absolute assurance that noncompliance with all laws will be detected where internal control is effective. B) Be relied upon to disclose violations of truth in lending laws. C) Encompass a plan to actively search for all illegalities which relate to operating aspects. D) Not be relied upon to provide absolute assurance that all noncompliance with laws will be detected.

D. Not be relied upon provide absolute assurance that all noncompliance with laws will be detected.

Which of the following constitutes a weakness in the internal control of a computer system? A) One generation of backup files is stored in an off-premises location. B) Operators distribute error messages to the control group. C) Operators do not have access to the complete systems manual. D) Operators are supervised by programmers.

D. Operators are supervised by programmers.

The order of presentation of sections in a public company financial statement audit report is: A) Basis for Opinion, Critical Audit Matters, Opinion. B) Basis for Opinion, Opinion, Critical Audit Matters. C) Critical Audit Matters, Basis for Opinion, Opinion. D) Opinion, Basis for Opinion, Critical Audit Matters.

D. Opinion, Basis for Opinion, Critical Audit Matters

Which of the following is not included in the auditors' standard unmodified audit report for a nonpublic company? A) The procedures selected by the auditor depend on the auditor's judgment. B) An audit includes evaluating the appropriateness of accounting policies used. C) An audit includes evaluating the overall presentation of the financial statements. D) Preferred accounting principles have been consistently applied.

D. Preferred accounting principles have been consistently applied

The Auditing Standards Board's guidance on matters such as the purpose of an audit, the premise of an audit, and auditor personal responsibilities is included in: A) The professional responsibilities section of the generally accepted auditing standards. B) The Code of Professional Conduct. C) Accounting Series Releases. D) Principles Underlying an Audit Conducted in Accordance with GAAS.

D. Principles Underlying an Audit Conducted in Accordance with GAAS

Which of the following is an authoritative body that the AICPA Code of Professional Conduct authorizes to promulgate auditing and attestation standards? A) Auditing Standards Commission. B) Financial Accounting Standards Board. C) International Accounting Standards Board. D) Public Company Accounting Oversight Board.

D. Public Company Accounting Oversight Board

If noncompliance with a law is discovered during the audit of a publicly held company, the auditors should first: A) Notify the regulatory authorities. B) Determine who was responsible for the noncompliance. C) Intensify the examination to identify noncompliance with any laws. D) Report the act to those in charge of governance within the client's organization.

D. Report the act to those in charge of governance within the client's organization.

Which common law approach leads to increased CPA liability to "foreseeable" third parties for ordinary negligence? A) Ultramares v. Touche. B) Restatement of Torts. C) Rule 10b-5. D) Rosenblum v. Adler.

D. Rosenblum v. Adler

Issue CPA certificates? A. Sarbanes-Oxley Act B. American Institute of Certified Public Accountants C. Public Company Accounting Oversight Board D. State Boards of Accountancy E. Federal Accounting Standards Advisory Board

D. State Boards of Accountancy

Which of the following is the most accurate statement regarding audit evidence? A) Audit evidence gathered by an auditor from outside an enterprise is reliable. B) Accounting data developed under satisfactory conditions of internal control are more relevant than data developed under unsatisfactory internal control conditions. C) Oral representations made by management are not valid evidence. D) The auditor must obtain sufficient appropriate audit evidence.

D. The auditor must obtain sufficient appropriate audit evidence.

Tests of controls do not ordinarily address: A) By whom a control was applied. B) How a control was applied. C) The consistency with which a control was applied. D) The cost effectiveness of the way a control was applied.

D. The cost effectiveness of the way a control was applied.

Which of the following is likely to be of least importance to an auditor in considering the internal control in a company with computer processing? A) The segregation of duties within the computer center. B) The control over source documents. C) The documentation maintained for accounting applications. D) The cost/benefit of data processing operations.

D. The cost/benefit of data processing operations.

Which of the following is not generally considered a difficulty in using data analytical approaches in auditing and other areas? A) Determining data likely to be useful. B) Limitations in data accuracy, completeness and quality. C) Combining disparate databases with one another. D) The requirement for networks of linked "super-computers" to perform any such calculations.

D. The requirement for networks of linked "super-computers" to perform any such calculations.

Which of the following is most likely to be considered a risk assessment procedure relating to internal control? A) Confirm accounts receivable. B) Perform a test of a control relating to payroll. C) Take test counts of the year-end inventory. D) Trace a transaction through the information system relevant to financial reporting.

D. Trace a transaction through the information system relevant to financial reporting.

A successor auditor should always make inquiries of the predecessor auditor before accepting an audit engagement. The successor should specifically inquire about the predecessor's: A) Awareness of the consistency in the application of generally accepted accounting principles between accounting periods. B) Evaluation of all matters of continuing accounting significance. C) Opinion of any subsequent events occurring since the predecessor's audit report was issued. D) Understanding as to the reasons for the change of auditors.

D. Understanding as to the reasons for the change of auditors.

Auditors will apply tests of details to accomplish which of the following?

Detecting material misstatements affecting the financial statements

Develop accounting standards for public and nonpublic companies? A. American Institute of Certified Public Accountants B. Public Company Accounting Oversight Board C. Government Accounting Standards Board D. Federal Accounting Standards Advisory Board E. Financial Accounting Standards Board

E. Financial Accounting Standards Board

Which of the following audit procedures is most likely to be conducted only after year-end?

Evaluation of management's adjusting journal entries to their financial statements

A CPA may receive a commission for recommending a particular computer system to an audit client.

FALSE

A peer review is generally performed by employees of the AICPA.

FALSE

Analytical procedures are seldom used during the risk assessment stage of an audit engagement because they are substantive procedures.

FALSE

Authentication can only be achieved through passwords.

FALSE

Despite the high cost, most small companies have their financial statements audited by a CPA firm, so they can obtain a loan.

FALSE

For a public company audit, the auditors are primarily responsible for preparing the financial statements and expressing an opinion on whether they follow generally accepted auditing standards.

FALSE

Generalized audit software is effective for substantive procedures, but not for tests of controls.

FALSE

If the auditors discover illegal acts by a client, they must immediately report the act to law enforcement.

FALSE

If the auditors' assessment of the design of internal control reveals that it cannot be relied upon, the auditors are not required to prepare any documentation of internal control for their working papers.

FALSE

Internal auditors should preferably report to the chief accounting officer of the company.

FALSE

The American Institute of Certified Public Accountants has been the primary source for ethical rules for internal auditors.

FALSE

The Rules portion of the AICPA Code of Professional Conduct must be followed by only those members in private practice.

FALSE

The Sarbanes-Oxley Act requires that auditors of certain publicly traded companies in the United States perform an integrated audit that includes providing assurance on both the financial statements and on compliance with laws and regulations.

FALSE

The Securities Exchange Act of 1933 offers recourse against the auditors to a far greater number of investors than does the Securities Act of 1934.

FALSE

The auditors' tests of controls are designed to substantiate the fairness of specific financial statement accounts.

FALSE

The precedent set by the Ernst & Ernst v. Hochfelder case is generally believed to have increased auditors' legal liability.

FALSE

The professional standards consider calculating depreciation expense a "routine" transaction.

FALSE

The use of data analytics in auditing requires large, error-free populations.

FALSE

Audit committees of public companies consist of:

Independent directors

Which of the following are considered components of internal control?

Risk assessment

A vendor's invoice is an example of documentary evidence created by a third party and held by the client

TRUE

Auditing is frequently only a small part of the practice of local CPA firms.

TRUE

CPA firms may use written narratives to describe internal control in their audit working papers.

TRUE

CPAs may advertise having special expertise other than accounting, auditing, and tax.

TRUE

Data encryption is an example of data communication control.

TRUE

Generalized audit software may be used for substantive procedures or for tests of controls.

TRUE

Partners in CPA firms usually have the responsibility for signing the firm's name on the audit report.

TRUE

Statements on Accounting and Review Services are enforceable under the AICPA Code of Professional Conduct.

TRUE

The American Institute of Certified Public Accountants creates the CPA Exam, while individual states issue CPA certificates and permits CPAs to practice.

TRUE

The SEC does not pass on the merits of the securities that are registered with the agency.

TRUE

The Securities Act of 1934 includes provisions for criminal charges against persons violating the Act.

TRUE

The operating system is an example of system software.

TRUE

The primary purpose of a letter of representation is to provide evidence about management's future intentions

TRUE

The pronouncements of the International Auditing and Assurance Standards Board do not override the national auditing standards of its members, even when financial statements are issued by a multinational company.

TRUE

The substantive approach to an audit is appropriate for many small businesses.

TRUE

Vouching the acquisition of assets is an audit procedure that is often performed to establish the existence of the assets.

TRUE

When the risk of material misstatement for an account is high, the auditors may perform additional substantive procedures to restrict detection risk to a lower level

TRUE

As specified in Title 2 of the SOX, which of the following non-audit services to audit clients are not prohibited from being performed by a registered public accounting firm if preapproved by the audit committee and disclosed to the SEC?

Tax compliance services

According to professional standards, which of the following circumstances will impair a CPA's independence?

The CPA's Independent stepchild has a material financial interest in the client of which the CPA is aware

In deciding whether to accept a prospective audit client, which of the following would have the biggest impact on the auditor's decision?

The client predecessor auditor indicated that the client's management lacks integrity

Which organization has oversight and enforcement authority over the public company accounting board and its decisions?

The securities and exchange commission SEC

Which of the following statements would be least likely to be included in an audit engagement letter?

We will not disclose any advice provided under the terms of this engagement letter to third parties unless instructed to do so