Exam 12: Reports on Audited Financial Statements

Independent auditors must consider whether the entity has the ability to continue as a going concern.If a substantial doubt exists but disclosure is adequate and no other basis exists for modifying the report,the auditors would normally

Which of the following is not included in the introductory paragraph of the standard report on the entity's financial statements?

A report that acknowledges reliance on the reports of component auditors is a type of report modification known as a(n)

Auditors are required to reference consistency in their report when there are changes in

C.Green,CPA,was engaged to audit the financial statements of Essex Co.after its fiscal year had ended.The timing of Green's appointment and the start of fieldwork made confirming accounts receivable by direct communication with the customers not feasible.However,Green applied other procedures and was satisfied as to the reasonableness of the account balances.Green's auditors' report most likely contained a(n)

The issuance of a disclaimer of opinion generally indicates

Auditors' addition of one or more paragraph(s)to a report on the entity's financial statements to highlight information to users that does not affect the opinion on the financial statements is referred to as __________________________________.

In all cases in which auditors are associated by name or participation with unaudited financial statements of public entities,the auditors must issue a disclaimer of opinion.

If the auditors obtain sufficient appropriate evidence on the entity's accounts receivable balance by using alternative procedures because it is impracticable to confirm accounts receivable,the opinion on the entity's financial statements should be unqualified and would

When audited financial statements are presented in a document containing other information,the auditors should

Changing from one GAAP method to another GAAP method may require auditors to modify their report because of matters related to the _____________________________ of the accounting principles used to prepare the entity's financial statements.

The auditors determined that the entity is suffering financial difficulty and the going-concern status is seriously in doubt.Assuming the entity adequately disclosed this matter in the financial statements,the auditors must choose between which of the following auditors' report alternatives?

If the auditors decide to present separate reports on the entity's financial statements and internal control over financial reporting,which of the following reports should be modified to refer to the other report?

When auditors are engaged to examine an entity's financial statements but decide to issue a disclaimer of opinion,the report would not

Which of the following report modifications would not be necessary if group auditors indicate a division of responsibility?

Rule 203 provides for the possibility that adherence to a pronouncement of the FASB might create _____________________________ financial statements.

When financial statements contain a departure from GAAP because of unusual circumstances and the statements would otherwise be misleading,the auditors should explain the unusual circumstances in a separate paragraph and express an opinion that is

If auditors cannot apply specific auditing procedures during the examination,the opinion paragraph in the report must be qualified.

The scope paragraph of the auditors' report contains a general description of the audit work and reference to standards of the Public Company Accounting Oversight Board.

Auditors would not normally issue a qualified opinion on the entity's financial statements when