Question 1

The management's responsibilities section of the standard unmodified opinion audit report for a nonpublic company states that the financial statements are

Accepted Answer

A)  the responsibility of the auditor. 
B)  the responsibility of management. 
C)  the joint responsibility of management and the auditor. 
D)  none of the above. 
A)  the responsibility of the auditor. 
B)  the responsibility of management. 
C)  the joint responsibility of management and the auditor. 
D)  none of the above.

Question 2

If the auditor concludes there are no critical audit matters, the auditor is not required to disclose this fact in the audit report.

Accepted Answer

A) True 
 B)False

Question 3

Indicate which change(s) would require an explanatory paragraph in the audit report.

Accepted Answer

A)    
B)    
C)    
D)    
A)    
B)    
C)    
D)

Question 4

When the client fails to include information that is necessary for the fair presentation of financial statements in the body of the statements or in the footnotes,

Accepted Answer

A)  it is the auditor's responsibility to present the information in the audit report. 
B)  the auditor should issue a qualified or an adverse opinion. 
C)  the qualification is put in an added paragraph preceding the opinion. 
D)  all of the above. 
A)  it is the auditor's responsibility to present the information in the audit report. 
B)  the auditor should issue a qualified or an adverse opinion. 
C)  the qualification is put in an added paragraph preceding the opinion. 
D)  all of the above.

Question 5

The unqualified opinion audit report for public entities includes which of the following sections and/or paragraphs?

Accepted Answer

A)  report title, address, and opinion 
B)  basis for opinion and discussion of critical audit areas 
C)  auditor information and date 
D)  All of the above are included. 
A)  report title, address, and opinion 
B)  basis for opinion and discussion of critical audit areas 
C)  auditor information and date 
D)  All of the above are included.

Question 6

The date of the auditor's report is indicative of the last day of the auditor's responsibility for the review of significant events occurring after the balance sheet date.

Accepted Answer

A) True 
 B)False

Question 7

When the auditor concludes that there is substantial doubt about the entity's ability to continue as a going concern, the appropriate audit report could be I. an unmodified opinion audit report with an explanatory paragraph.
II) a disclaimer of opinion.

Accepted Answer

A)  I only 
B)  II only 
C)  I or II 
D)  Neither I nor II 
A)  I only 
B)  II only 
C)  I or II 
D)  Neither I nor II

Question 8

When there is a scope restriction, what type of audit report can be issued?

Accepted Answer

A)  unmodified opinion 
B)  qualification of scope and opinion 
C)  disclaimer of opinion 
D)  any of the above 
A)  unmodified opinion 
B)  qualification of scope and opinion 
C)  disclaimer of opinion 
D)  any of the above

Question 9

Under PCAOB standards,

Accepted Answer

A)  the standard unmodified opinion audit report is referred to as an unqualified opinion audit report. 
B)  the scope paragraph states that the financial statements are the responsibility of management. 
C)  internal controls of a public company must be audited every five years. 
D)  the scope paragraph is the same as the scope paragraph for private companies. 
A)  the standard unmodified opinion audit report is referred to as an unqualified opinion audit report. 
B)  the scope paragraph states that the financial statements are the responsibility of management. 
C)  internal controls of a public company must be audited every five years. 
D)  the scope paragraph is the same as the scope paragraph for private companies.

Question 10

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

Accepted Answer

A)  the scope paragraph. 
B)  an introductory paragraph. 
C)  the opinion paragraph. 
D)  a separate paragraph. 
A)  the scope paragraph. 
B)  an introductory paragraph. 
C)  the opinion paragraph. 
D)  a separate paragraph.

The management's responsibilities section of the standard unmodified opinion audit report for a nonpublic company states that the financial statements are

If the auditor concludes there are no critical audit matters, the auditor is not required to disclose this fact in the audit report.

Indicate which change(s) would require an explanatory paragraph in the audit report.

When the client fails to include information that is necessary for the fair presentation of financial statements in the body of the statements or in the footnotes,

The unqualified opinion audit report for public entities includes which of the following sections and/or paragraphs?

The date of the auditor's report is indicative of the last day of the auditor's responsibility for the review of significant events occurring after the balance sheet date.

When the auditor concludes that there is substantial doubt about the entity's ability to continue as a going concern, the appropriate audit report could be I. an unmodified opinion audit report with an explanatory paragraph. II) a disclaimer of opinion.

When there is a scope restriction, what type of audit report can be issued?

Under PCAOB standards,

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

The Demand for Audit and Other Assurance Services

The CPA Profession

Professional Ethics

Legal Liability

Audit Responsibilities and Objectives

Audit Evidence

Audit Planning and Materiality

Assessing the Risk of Material Misstatement

Fraud Auditing

Internal Control and Coso Framework

Assessing Control Risk and Reporting on Internal Controls

Overall Audit Strategy and Audit Program

Audit of the Sales and Collection Cycle: Tests of Controls

Audit Sampling for Tests of Controls and Substantive Tests of Transactions

Completing the Tests in the Sales and Collection Cycle: Accounts Receivable

Audit Sampling for Tests of Details of Balances

Audit of the Acquisition and Payment Cycle: Tests of Controls, Substantive Tests of Transactions, and Accounts Payable

Completing the Tests in the Acquisition and Payment Cycle: Verification of Selected Accounts

Audit of the Payroll and Personnel Cycle

Audit of the Inventory and Warehousing Cycle

Audit of the Capital Acquisition and Repayment Cycle

Audit of Cash and Financial Instruments

Completing the Audit

Other Assurance Services

Internal and Governmental Financial Auditing and Operational Auditing

Filters

Exam 3: Audit Reports

The management's responsibilities section of the standard unmodified opinion audit report for a nonpublic company states that the financial statements are

If the auditor concludes there are no critical audit matters, the auditor is not required to disclose this fact in the audit report.

Indicate which change(s) would require an explanatory paragraph in the audit report.

When the client fails to include information that is necessary for the fair presentation of financial statements in the body of the statements or in the footnotes,

The unqualified opinion audit report for public entities includes which of the following sections and/or paragraphs?

The date of the auditor's report is indicative of the last day of the auditor's responsibility for the review of significant events occurring after the balance sheet date.

When the auditor concludes that there is substantial doubt about the entity's ability to continue as a going concern, the appropriate audit report could be I. an unmodified opinion audit report with an explanatory paragraph. II) a disclaimer of opinion.

When there is a scope restriction, what type of audit report can be issued?

Under PCAOB standards,

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

The Demand for Audit and Other Assurance Services

The CPA Profession

Professional Ethics

Legal Liability

Audit Responsibilities and Objectives

Audit Evidence

Audit Planning and Materiality

Assessing the Risk of Material Misstatement

Fraud Auditing

Internal Control and Coso Framework

Assessing Control Risk and Reporting on Internal Controls

Overall Audit Strategy and Audit Program

Audit of the Sales and Collection Cycle: Tests of Controls

Audit Sampling for Tests of Controls and Substantive Tests of Transactions

Completing the Tests in the Sales and Collection Cycle: Accounts Receivable

Audit Sampling for Tests of Details of Balances

Audit of the Acquisition and Payment Cycle: Tests of Controls, Substantive Tests of Transactions, and Accounts Payable

Completing the Tests in the Acquisition and Payment Cycle: Verification of Selected Accounts

Audit of the Payroll and Personnel Cycle

Audit of the Inventory and Warehousing Cycle

Audit of the Capital Acquisition and Repayment Cycle

Audit of Cash and Financial Instruments

Completing the Audit

Other Assurance Services

Internal and Governmental Financial Auditing and Operational Auditing

Filters