Exam 3: Audit Reports

If there is a deviation in the statements' preparation in accordance with GAAP and another accounting principle was applied on a basis that was not consistent with that of the preceding year,

When analyzing the various types of audit reports,

Items that materially affect the comparability of financial statements generally require disclosure in the footnotes.If the client refuses to properly disclose the item,the auditor will most likely issue

Indicate which changes would require an explanatory paragraph in the audit report.

The introductory paragraph of the standard unmodified opinion audit report for a nonpublic company performs which functions? I. It states the CPA has performed an audit. II. It lists the financial statements being audited. III. It states the financial statements are the responsibility of the auditor.

Auditors of public company financial statements must issue separate reports on internal control over financial reporting.

An auditor will issue a disclaimer when he concludes that the financial statements are not fairly presented.

The audit report date on a standard unmodified opinion audit report indicates

When an adverse opinion is issued,a scope paragraph would be

All of the following would require an emphasis of matter paragraph except for

In which situation would the auditor be choosing between "except for" qualified opinion and an adverse opinion?

When there is uncertainty about a company's ability to continue as a going concern,the auditor's concern is the possibility that the client may not be able to continue its operations or meet its obligations for a "reasonable period of time." For this purpose,a reasonable period of time is considered not to exceed

AICPA auditing standards provide uniform wording for the auditor's report to enable users of the financial statements to understand the audit report.

When analyzing the various types of opinions that the auditor can issue,

When a client fails to follow GAAP,the audit report can be unmodified,qualified,or adverse depending on the materiality.What factors affect materiality that an auditor should consider?

When the auditor determines that the financial statements are fairly stated,but there is a nonindependent relationship between the auditor and the client,the auditor should issue

The auditor's responsibility section of the standard unmodified opinion audit report states that the audit is designed to

The unqualified opinion audit report for public entities includes the following three paragraphs:

When accounting principles are not consistently applied,and the materiality level is immaterial,the auditor will issue a(n)

When a company's financial statements contain a departure from GAAP with which the auditor concurs,the departure should be explained in