Exam 18: Audit reporting

Misstatements must be compared with some measurement base before a decision can be made about the materiality of the failure to follow accounting standards.A commonly accepted measurement base is:

(Multiple Choice)

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Question 41

Whenever an auditor adds an emphasis of matter section to an unmodified audit report, the implication is that the auditor:

(Multiple Choice)

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Question 42

The audit report is normally addressed to the company's president or chief executive officer.

(True/False)

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Question 43

When a misstatement in the financial report would affect a user's decision but the overall statements are still fairly stated, it would be appropriate to issue:

(Multiple Choice)

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Question 44

The phrase 'auditing standards require that we...plan and perform the audit to obtain reasonable assurance whether the financial report is free of material misstatement' is included in the opinion paragraph of an audit report.

(True/False)

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Question 45

The appropriate date for the audit report is the one on which the:

(Multiple Choice)

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Question 46

What three conditions must be met in order for a standard unmodified audit report to be appropriate?

(Essay)

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Question 47

Which auditing standard requires an expression of an opinion about the overall financial report?

(Multiple Choice)

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Question 48

Which of the following representations does an auditor make when he or she issues an unmodified audit opinion?

(Multiple Choice)

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Question 49

If the balance sheet of a company is dated 30 June 2012, the audit report is dated 6 September 2012, and both are released to the public on 15 September 2012, this indicates that the auditor has searched for material unrecorded transactions and events that occurred up to:

(Multiple Choice)

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Question 50

Goods Pty Ltd's financial report shows a profit increase of 20% on the previous year.The chairman's report in Goods Pty Ltd's annual report boasts of a 50% increase in profit from the previous year.The auditor's report should include:

(Multiple Choice)

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Question 51

Of the two major categories of scope limitations, (1)those caused by client and (2)those caused by conditions beyond the control of either the client or the auditor, the effect on the auditor's report is:

(Multiple Choice)

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Question 52

What are the two conditions under which a qualified opinion may be issued?

(Essay)

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Question 53

Explain the four circumstances under which an 'emphasis of matter section' should be included in the audit report.

(Essay)

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Question 54

The LEAST severe type of report for disclosing departures from an unmodified report is the:

(Multiple Choice)

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Question 55

When there is a material inconsistency between the financial report and other information in the annual report, and the client refuses to change the information, the auditor should:

(Multiple Choice)

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Question 56

Auditing standards require that an audit report include the word 'independent' in the report's title.

(True/False)

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Question 57

It is usually more difficult to evaluate the materiality of potential errors resulting from a disagreement with management than from a scope limitation.

(True/False)

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Question 58

It is appropriate to issue an opinion that contains the phrase 'because of the significance of the matter described in the Basis for Disclaimer of Opinion paragraph' when:

(Multiple Choice)

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Question 59

Which one of the following is NOT a departure from an unmodified opinion?

(Multiple Choice)

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Question 60

Showing 41 - 60 of 85

Misstatements must be compared with some measurement base before a decision can be made about the materiality of the failure to follow accounting standards.A commonly accepted measurement base is:

Whenever an auditor adds an emphasis of matter section to an unmodified audit report, the implication is that the auditor:

The audit report is normally addressed to the company's president or chief executive officer.

When a misstatement in the financial report would affect a user's decision but the overall statements are still fairly stated, it would be appropriate to issue:

The phrase 'auditing standards require that we...plan and perform the audit to obtain reasonable assurance whether the financial report is free of material misstatement' is included in the opinion paragraph of an audit report.

The appropriate date for the audit report is the one on which the:

What three conditions must be met in order for a standard unmodified audit report to be appropriate?

Which auditing standard requires an expression of an opinion about the overall financial report?

Which of the following representations does an auditor make when he or she issues an unmodified audit opinion?

If the balance sheet of a company is dated 30 June 2012, the audit report is dated 6 September 2012, and both are released to the public on 15 September 2012, this indicates that the auditor has searched for material unrecorded transactions and events that occurred up to:

Goods Pty Ltd's financial report shows a profit increase of 20% on the previous year.The chairman's report in Goods Pty Ltd's annual report boasts of a 50% increase in profit from the previous year.The auditor's report should include:

Of the two major categories of scope limitations, (1)those caused by client and (2)those caused by conditions beyond the control of either the client or the auditor, the effect on the auditor's report is:

What are the two conditions under which a qualified opinion may be issued?

Explain the four circumstances under which an 'emphasis of matter section' should be included in the audit report.

The LEAST severe type of report for disclosing departures from an unmodified report is the:

When there is a material inconsistency between the financial report and other information in the annual report, and the client refuses to change the information, the auditor should:

Auditing standards require that an audit report include the word 'independent' in the report's title.

It is usually more difficult to evaluate the materiality of potential errors resulting from a disagreement with management than from a scope limitation.

It is appropriate to issue an opinion that contains the phrase 'because of the significance of the matter described in the Basis for Disclaimer of Opinion paragraph' when:

Which one of the following is NOT a departure from an unmodified opinion?

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