Exam 12: Reports on Audited Financial Statements

In which of the following circumstances may auditors issue the standard report on the entity's financial statements?

When a circumstance-imposed scope limitation has a material but not pervasive effect on the sufficiency of the auditors' evidence, the auditors' report will

Which of the following situations would require auditors to add an other-matter paragraph to their report on comparative financial statements?

Which of the following would not be communicated to users in the auditors' report on an entity's financial statements and related disclosures?

When reporting on financial statements that include only summarized totals of account balances, the auditors' conclusion should state whether the information in the condensed financial statements is

Situations in which auditors provide additional copies of a previously issued report or grant entities permission to use a previously issued report in a document containing financial statements after its original date are known as

Which of the following phrases would auditors most likely include in their report when expressing a qualified opinion on the entity's financial statements because of inadequate disclosure?

Reference in a group auditors' report to the fact that part of the audit of group financial statements was performed by component auditors most likely would be an indication of

When qualifying an opinion because of an insufficiency of audit evidence, an auditor should refer to the situation in the Auditor's Responsibilities for Notes to the the Audit of the Financial Financial Statements Section Statements A. Yes Yes B. Yes No C. No Yes D. No No

The auditors conclude that an entity's illegal act, which has a material effect on the financial statements, has not been properly accounted for or disclosed. Depending on the overall materiality and pervasiveness of the effect of this illegal act on the financial statements, the auditors should express either a(n)

Auditors are required to reference consistency in their report when there are changes in

If financial statements contain a material but non-pervasive departure from generally accepted accounting principles, the auditors should render a(n)

Carson, LLP, audited Best Corporation's financial statements for the year ended December 31, Year 1. On February 15, Year 3, Carson gave Best permission to reissue the report previously issued on and dated March 1, Year 2. When is the cutoff date for Carson's responsibility on the reissued report?

When reporting on comparative financial statements, auditors ordinarily should modify their previously expressed opinion on the prior years' financial statements if the

What is the auditors' responsibility for reporting on other information accompanying financial statements?

In which of the following circumstances would auditors most likely add an explanatory paragraph to the standard report without modifying the opinion on the entity's financial statements?

When audited financial statements are presented in a document containing other information, the auditors should

Hart, CPA, is auditing the year 2 financial statements of Kell Co. Previously, Hart audited Kell's year 1 financial statements and expressed a qualified opinion due to a scope limitation. Hart decides to include an explanatory paragraph in the year 2 report because comparative financial statements are being presented for year 2 and year 1. This paragraph should indicate the

Which of the following statements is not included in the Basis for Opinion section of the standard report on the entity's financial statements?

Situations in which auditors provide additional copies of a previously issued report or grant entities permission to use a previously issued report in a document containing financial statements after its original date are known as