Question 1

If the principal auditor decides to make reference to the other auditor's audit, the opinion section must specifically indicate the:

Accepted Answer

A) portion of the financial statements examined by the other auditor. 
B) name of the other auditor. 
C) name of the consolidated subsidiary examined by the other auditor. 
D) type of opinion expressed by the other auditor. 
A) portion of the financial statements examined by the other auditor. 
B) name of the other auditor. 
C) name of the consolidated subsidiary examined by the other auditor. 
D) type of opinion expressed by the other auditor.

Question 2

The auditor's best course of action with respect to "other financial information" included in an annual report containing the auditor's report is to:

Accepted Answer

A) indicate in the auditor's report that the "other financial information" is unaudited. 
B) consider whether the "other financial information" is accurate by performing a limited review. 
C) obtain written representations from management as to the material accuracy of the "other financial information." 
D) read and consider the manner of presentation of the "other financial information." 
A) indicate in the auditor's report that the "other financial information" is unaudited. 
B) consider whether the "other financial information" is accurate by performing a limited review. 
C) obtain written representations from management as to the material accuracy of the "other financial information." 
D) read and consider the manner of presentation of the "other financial information."

Question 3

For each of the following situations, indicate what type of audit report is most appropriate.
a. The auditor lacks independence in fact, but not necessarily in appearance.
b. There is a scope limitation and it is material but the overall financial statements are still presented fairly.
c. The uncorrected misstatements are immaterial.
d. There is a departure from GAAP and it is pervasively material.

Accepted Answer

a. Disclaimer; b. Qu

Question 4

Which of the following situations will not result in modification of the auditor's report because of a scope limitation?

Accepted Answer

A) Restriction imposed by the client. 
B) Reliance placed on the report of another auditor. 
C) Inability to obtain sufficient appropriate evidential matter. 
D) Restriction caused by the circumstance of the engagement. 
A) Restriction imposed by the client. 
B) Reliance placed on the report of another auditor. 
C) Inability to obtain sufficient appropriate evidential matter. 
D) Restriction caused by the circumstance of the engagement.

If the principal auditor decides to make reference to the other auditor's audit, the opinion section must specifically indicate the:

The auditor's best course of action with respect to "other financial information" included in an annual report containing the auditor's report is to:

Which of the following situations will not result in modification of the auditor's report because of a scope limitation?

An Introduction to Assurance and Financial Statement Auditing

The Financial Statement Auditing Environment

Audit Planning, Types of Audit Tests, and Materiality

Risk Assessment

Evidence and Documentation

Internal Control in a Financial Statement Audit

Auditing Internal Control Over Financial Reporting

Audit Sampling: An Overview and Application to Tests of Controls

Audit Sampling: An Application to Substantive Tests of Account Balances

Auditing the Revenue Process

Auditing the Purchasing Process

Auditing the Human Resource Management Process

Auditing the Inventory Management Process

Auditing the Financinginvesting Process: Prepaid Expenses, Intangible Assets, and Property, Plant, and Equipment

Auditing the Financinginvesting Process: Long-Term Liabilities, Stockholders' Equity, and Income Statement Accounts

Auditing the Financinginvesting Process: Cash and Investments

Completing the Audit Engagement

Professional Conduct, Independence, and Quality Control

Legal Liability

Assurance, Attestation, and Internal Auditing Services

Filters

Exam 18: Reports on Audited Financial Statements

If the principal auditor decides to make reference to the other auditor's audit, the opinion section must specifically indicate the:

The auditor's best course of action with respect to "other financial information" included in an annual report containing the auditor's report is to:

Which of the following situations will not result in modification of the auditor's report because of a scope limitation?

An Introduction to Assurance and Financial Statement Auditing

The Financial Statement Auditing Environment

Audit Planning, Types of Audit Tests, and Materiality

Risk Assessment

Evidence and Documentation

Internal Control in a Financial Statement Audit

Auditing Internal Control Over Financial Reporting

Audit Sampling: An Overview and Application to Tests of Controls

Audit Sampling: An Application to Substantive Tests of Account Balances

Auditing the Revenue Process

Auditing the Purchasing Process

Auditing the Human Resource Management Process

Auditing the Inventory Management Process

Auditing the Financinginvesting Process: Prepaid Expenses, Intangible Assets, and Property, Plant, and Equipment

Auditing the Financinginvesting Process: Long-Term Liabilities, Stockholders' Equity, and Income Statement Accounts

Auditing the Financinginvesting Process: Cash and Investments

Completing the Audit Engagement

Professional Conduct, Independence, and Quality Control

Legal Liability

Assurance, Attestation, and Internal Auditing Services

Filters