Question 1

The most common type of audit report is the standard unmodified audit report.

Accepted Answer

A) True 
 B)False  True

Question 2

The audit of a half-year financial report requires the same audit procedures as those performed during the annual financial report audit.

Accepted Answer

A) True 
 B)False  True

Question 3

A disclaimer of opinion is issued whenever the auditor:

Accepted Answer

A)  believes that some material part of the financial report is not presented fairly. 
B)  believes that the overall financial report is not presented fairly. 
C)  has determined that the financial report is presented fairly. 
D)  has been unable to obtain sufficient appropriate audit evidence on which to base the opinion, and the possible effects on the financial report could be both material and pervasive. 
A)  believes that some material part of the financial report is not presented fairly. 
B)  believes that the overall financial report is not presented fairly. 
C)  has determined that the financial report is presented fairly. 
D)  has been unable to obtain sufficient appropriate audit evidence on which to base the opinion, and the possible effects on the financial report could be both material and pervasive. D

Question 4

The auditor's conclusions are stated as opinion rather than a statement of fact:

Accepted Answer

A)  to avoid the possibility of legal action against the auditor. 
B)  to allow for a margin of error. 
C)  because conclusions are based on professional judgement. 
D)  all of the above 
A)  to avoid the possibility of legal action against the auditor. 
B)  to allow for a margin of error. 
C)  because conclusions are based on professional judgement. 
D)  all of the above

Question 5

What are the two main causes of scope limitations?

Accepted Answer

.limitations imposed by the client, such

Question 6

The Corporations Act requires that the financial report of a company must present a true and fair view of its state of affairs and profit (or loss)only.

Accepted Answer

A) True 
 B)False

Question 7

The audit report date indicates the:

Accepted Answer

A)  last day of the financial period. 
B)  date on which the financial report was filed with ASIC. 
C)  last date on which users may institute a lawsuit against either the client or the auditor. 
D)  last day of the auditor's responsibility for the review of significant events that occurred after the date of the financial report. 
A)  last day of the financial period. 
B)  date on which the financial report was filed with ASIC. 
C)  last date on which users may institute a lawsuit against either the client or the auditor. 
D)  last day of the auditor's responsibility for the review of significant events that occurred after the date of the financial report.

Question 8

What condition requires departure from an unmodified report?

Accepted Answer

A)  a materially misstated financial report 
B)  inability to obtain sufficient appropriate audit evidence 
C)  both A and B 
D)  none of the above 
A)  a materially misstated financial report 
B)  inability to obtain sufficient appropriate audit evidence 
C)  both A and B 
D)  none of the above

Question 9

The signature section of the audit report identifies the public accounting firm that has performed the audit.

Accepted Answer

A) True 
 B)False

Question 10

A disclaimer of opinion resulting from a client limitation requires a 'basis' section to describe the limitation.

Accepted Answer

A) True 
 B)False

Question 11

What are the nine distinct parts of a standard audit report?

Accepted Answer

.title, which should include the word 'i

Question 12

Which of the following is NOT a category of audit or attestation report?

Accepted Answer

A)  an audit of internal controls 
B)  an audit of financial reports 
C)  agreed-upon audit procedures 
D)  a review engagement 
A)  an audit of internal controls 
B)  an audit of financial reports 
C)  agreed-upon audit procedures 
D)  a review engagement

Question 13

When amounts are so material that an adverse opinion is required, the opinion statement must clearly state that the financial report:

Accepted Answer

A)  does not present a true and fair view. 
B)  should not be relied on. 
C)  could not be audited. 
D)  is not free from material error. 
A)  does not present a true and fair view. 
B)  should not be relied on. 
C)  could not be audited. 
D)  is not free from material error.

Question 14

If an audit report is qualified, the qualification is included in the opinion paragraph.

Accepted Answer

A) True 
 B)False

Question 15

The Corporations Act 2001 requires the auditor of a financial report to form an opinion about whether the:

Accepted Answer

A)  auditor has been given all necessary information, explanation, and assistance. 
B)  financial report complies with accounting standards and presents a true and fair view. 
C)  entity has kept sufficient records for the financial report to be prepared and audited. 
D)  all of the above 
A)  auditor has been given all necessary information, explanation, and assistance. 
B)  financial report complies with accounting standards and presents a true and fair view. 
C)  entity has kept sufficient records for the financial report to be prepared and audited. 
D)  all of the above

Question 16

Auditing standards require that an audit report be issued whenever a public accounting firm:

Accepted Answer

A)  is associated with financial reports. 
B)  does ASIC-regulated work. 
C)  performs an audit. 
D)  is engaged to perform any services of any nature. 
A)  is associated with financial reports. 
B)  does ASIC-regulated work. 
C)  performs an audit. 
D)  is engaged to perform any services of any nature.

Question 17

The most common case in which conditions beyond both the client's and the auditor's control cause a scope limitation is an engagement:

Accepted Answer

A)  agreed upon after the client's balance sheet date. 
B)  where the auditor doesn't have enough staff to satisfactorily audit all of the client's foreign subsidiaries. 
C)  where the client is going through bankruptcy. 
D)  where the client won't allow the auditor to confirm receivables for fear of offending its customers. 
A)  agreed upon after the client's balance sheet date. 
B)  where the auditor doesn't have enough staff to satisfactorily audit all of the client's foreign subsidiaries. 
C)  where the client is going through bankruptcy. 
D)  where the client won't allow the auditor to confirm receivables for fear of offending its customers.

Question 18

If a misstatement exists, but is unlikely to affect the decisions of a reasonable user, it is appropriate to issue:

Accepted Answer

A)  an unmodified opinion. 
B)  an adverse opinion. 
C)  a qualified opinion. 
D)  an ability to form an opinion. 
A)  an unmodified opinion. 
B)  an adverse opinion. 
C)  a qualified opinion. 
D)  an ability to form an opinion.

Question 19

If the preparers of the financial report believe that the application of an accounting standard may mislead the users of those statements, and the auditor concurs with this view:

Accepted Answer

A)  a scope limitation will arise. 
B)  a standard unmodified opinion can be issued. 
C)  the accounting standard need not be followed. 
D)  an emphasis of matter paragraph will be added to the audit report. 
A)  a scope limitation will arise. 
B)  a standard unmodified opinion can be issued. 
C)  the accounting standard need not be followed. 
D)  an emphasis of matter paragraph will be added to the audit report.

Question 20

The most common case in which conditions beyond both the client's and the auditor's control cause a scope limitation is an engagement agreed upon after the client's balance sheet date.

Accepted Answer

A) True 
 B)False

The most common type of audit report is the standard unmodified audit report.

The audit of a half-year financial report requires the same audit procedures as those performed during the annual financial report audit.

A disclaimer of opinion is issued whenever the auditor:

The auditor's conclusions are stated as opinion rather than a statement of fact:

What are the two main causes of scope limitations?

The Corporations Act requires that the financial report of a company must present a true and fair view of its state of affairs and profit (or loss)only.

The audit report date indicates the:

What condition requires departure from an unmodified report?

The signature section of the audit report identifies the public accounting firm that has performed the audit.

A disclaimer of opinion resulting from a client limitation requires a 'basis' section to describe the limitation.

What are the nine distinct parts of a standard audit report?

Which of the following is NOT a category of audit or attestation report?

When amounts are so material that an adverse opinion is required, the opinion statement must clearly state that the financial report:

If an audit report is qualified, the qualification is included in the opinion paragraph.

The Corporations Act 2001 requires the auditor of a financial report to form an opinion about whether the:

Auditing standards require that an audit report be issued whenever a public accounting firm:

The most common case in which conditions beyond both the client's and the auditor's control cause a scope limitation is an engagement:

If a misstatement exists, but is unlikely to affect the decisions of a reasonable user, it is appropriate to issue:

If the preparers of the financial report believe that the application of an accounting standard may mislead the users of those statements, and the auditor concurs with this view:

The most common case in which conditions beyond both the client's and the auditor's control cause a scope limitation is an engagement agreed upon after the client's balance sheet date.

Demand for audit and assurance services

Auditors’ legal environment

Audit quality and ethics

Audit responsibilities and objectives

Audit evidence

Audit planning and documentation

Materiality and risk

Internal control and control risk

Fraud auditing

The impact of information technology on the audit process

Overall audit plan and audit program

Audit of the sales and collection cycle: Tests of controls and substantive tests of transactions

Completing tests in the sales and collection cycle: Accounts receivable

Audit sampling

Audit of transaction cycles and financial statement balances I

Audit of transaction cycles and financial statement balances II

Completing the audit

Other auditing and assurance engagements

Filters

Exam 18: Audit reporting

The most common type of audit report is the standard unmodified audit report.

The audit of a half-year financial report requires the same audit procedures as those performed during the annual financial report audit.

A disclaimer of opinion is issued whenever the auditor:

The auditor's conclusions are stated as opinion rather than a statement of fact:

What are the two main causes of scope limitations?

The Corporations Act requires that the financial report of a company must present a true and fair view of its state of affairs and profit (or loss)only.

The audit report date indicates the:

What condition requires departure from an unmodified report?

The signature section of the audit report identifies the public accounting firm that has performed the audit.

A disclaimer of opinion resulting from a client limitation requires a 'basis' section to describe the limitation.

What are the nine distinct parts of a standard audit report?

Which of the following is NOT a category of audit or attestation report?

When amounts are so material that an adverse opinion is required, the opinion statement must clearly state that the financial report:

If an audit report is qualified, the qualification is included in the opinion paragraph.

The Corporations Act 2001 requires the auditor of a financial report to form an opinion about whether the:

Auditing standards require that an audit report be issued whenever a public accounting firm:

The most common case in which conditions beyond both the client's and the auditor's control cause a scope limitation is an engagement:

If a misstatement exists, but is unlikely to affect the decisions of a reasonable user, it is appropriate to issue:

If the preparers of the financial report believe that the application of an accounting standard may mislead the users of those statements, and the auditor concurs with this view:

The most common case in which conditions beyond both the client's and the auditor's control cause a scope limitation is an engagement agreed upon after the client's balance sheet date.

Demand for audit and assurance services

Auditors’ legal environment

Audit quality and ethics

Audit responsibilities and objectives

Audit evidence

Audit planning and documentation

Materiality and risk

Internal control and control risk

Fraud auditing

The impact of information technology on the audit process

Overall audit plan and audit program

Audit of the sales and collection cycle: Tests of controls and substantive tests of transactions

Completing tests in the sales and collection cycle: Accounts receivable

Audit sampling

Audit of transaction cycles and financial statement balances I

Audit of transaction cycles and financial statement balances II

Completing the audit

Other auditing and assurance engagements

Filters