Exam 15: Audit Reports on Financial Statements

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Types of Audit Opinions. A CPA, engaged in the audit of financial statements of a large manufacturer with branch offices that are widely dispersed, is not able to count the substantial undeposited cash receipts at the close of business on the last day of the fiscal year at all branches. As an alternative to this procedure to verify the accurate cutoff of cash receipts, the CPA observes that deposits in transit as shown on the year-end bank reconciliation appeared as credits on the bank statement on the first business day of the New Year. Based on this, the auditor was satisfied as to the cutoff of cash receipts. REQUIRED: Which type of audit report would you suggest be issued this year and why?

(Essay)

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Question 101

Adverse opinions. Under what circumstances would an auditor issue an adverse opinion?

(Essay)

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Question 102

The decision about whether to make reference to another auditor in the report on the audit of ICFR does not differ from the corresponding decision as it relates to the audit of the financial statements.

(True/False)

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Question 103

When management chooses to include information in its report on ICFR that is in addition to the information required to be provided, what should the auditor do?

(Multiple Choice)

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Question 104

Auditing reporting standards for financial statement and integrated audits require auditors to provide which of the following?

(Multiple Choice)

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Question 105

The auditor will issue an unqualified opinion on ICFR if the auditor has identified only one material weakness in ICFR.

(True/False)

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Question 106

An emphasis of a matter may result in which of the following?

(Multiple Choice)

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Question 107

Types of Audit Opinions Bacon, CPAs, is the principal auditor for Martin Industries, a U.S. public company. However, Bacon decides to refer to the work of Hsu and Wen, CPAs, who audited a wholly owned subsidiary of the entity and issued an unqualified opinion. REQUIRED: Which type of audit report would you suggest be issued this year and why?

(Essay)

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Question 108

In the audit of consolidated financial statements under U.S. auditing standards when more than one CPA firm is involved and the principal audit firm chooses to mention the other firm(s), the wording of which paragraph(s) is modified?

(Multiple Choice)

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Question 109

Showing 101 - 109 of 109

Adverse opinions. Under what circumstances would an auditor issue an adverse opinion?

The decision about whether to make reference to another auditor in the report on the audit of ICFR does not differ from the corresponding decision as it relates to the audit of the financial statements.

When management chooses to include information in its report on ICFR that is in addition to the information required to be provided, what should the auditor do?

Auditing reporting standards for financial statement and integrated audits require auditors to provide which of the following?

The auditor will issue an unqualified opinion on ICFR if the auditor has identified only one material weakness in ICFR.

An emphasis of a matter may result in which of the following?

In the audit of consolidated financial statements under U.S. auditing standards when more than one CPA firm is involved and the principal audit firm chooses to mention the other firm(s), the wording of which paragraph(s) is modified?

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