Exam 18: Reports on Audited Financial Statements

When are an auditor's reporting responsibilities not met by attaching an explanation of the circumstances and a disclaimer of opinion to the client's financial statement?

(Multiple Choice)

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Question 21

Changes that do not affect consistency are normally disclosed in the footnotes but do not require an explanatory/emphasis-of-matter paragraph in the audit report.

(True/False)

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Question 22

In which of the following situations would an auditor ordinarily choose between expressing an "except for" qualified opinion and expressing an adverse opinion?

(Multiple Choice)

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Question 23

If the auditor believes that there is minimal likelihood that resolution of an uncertainty will have a material effect on the financial statements,the auditor would issue a(n)

(Multiple Choice)

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Question 24

An opinion based in part on the report of another auditor requires an explanatory/emphasis-of-matter paragraph be added to the standard unqualified/unmodified audit report.

(True/False)

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Question 25

In the first audit of a client,because of the client's record retention policies,an auditor was not able to gather sufficient evidence about the consistent application of accounting principles between the current and the prior year,as well as the amounts of assets or liabilities at the beginning of the current year.If the amounts in question could materially affect current operating results,the auditor would

(Multiple Choice)

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Question 26

Which of the following would not require an explanatory/emphasis-of-matter paragraph in the auditor's report?

(Multiple Choice)

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Question 27

Comparative financial statements include the financial statements of a prior period that were examined by a predecessor auditor whose report is not presented.If the predecessor auditor's report was qualified,the successor auditor must

(Multiple Choice)

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Question 28

Other bases of accounting (special purpose frameworks)include all of the following except:

(Multiple Choice)

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Question 29

A basic assumption that underlies financial reporting is that an entity will continue as a going concern.

(True/False)

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Question 30

Auditing standards define special purpose financial statements as including those prepared under the following base(s)

(Multiple Choice)

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Question 31

An auditor must disclaim an opinion when the auditor lacks independence.

(True/False)

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Question 32

A going concern issue requires a modification of the wording to the three-paragraph standard unqualified audit report (public company).

(True/False)

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Question 33

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

(Multiple Choice)

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Question 34

When an auditor expresses an adverse opinion,the opinion paragraph should include

(Multiple Choice)

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Question 35

In the auditor's report,the principal auditor decides not to make reference to another CPA who audited a client's subsidiary.The principal auditor could justify this decision if,among other requirements,the principal auditor

(Multiple Choice)

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Question 36

Which of the generally accepted auditing standards of reporting would not normally apply to special reports such as cash basis statements?

(Multiple Choice)

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Question 37

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 related footnotes,it is the responsibility of the auditor to present the information,if practicable,in the auditor's report and express a(n)

(Multiple Choice)

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Question 38

When an auditor reports on financial statements prepared on an entity's income tax basis,the auditor's report should

(Multiple Choice)

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Question 39

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

(Multiple Choice)

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Question 40

Showing 21 - 40 of 75

When are an auditor's reporting responsibilities not met by attaching an explanation of the circumstances and a disclaimer of opinion to the client's financial statement?

Changes that do not affect consistency are normally disclosed in the footnotes but do not require an explanatory/emphasis-of-matter paragraph in the audit report.

In which of the following situations would an auditor ordinarily choose between expressing an "except for" qualified opinion and expressing an adverse opinion?

If the auditor believes that there is minimal likelihood that resolution of an uncertainty will have a material effect on the financial statements,the auditor would issue a(n)

An opinion based in part on the report of another auditor requires an explanatory/emphasis-of-matter paragraph be added to the standard unqualified/unmodified audit report.

Which of the following would not require an explanatory/emphasis-of-matter paragraph in the auditor's report?

Comparative financial statements include the financial statements of a prior period that were examined by a predecessor auditor whose report is not presented.If the predecessor auditor's report was qualified,the successor auditor must

Other bases of accounting (special purpose frameworks)include all of the following except:

A basic assumption that underlies financial reporting is that an entity will continue as a going concern.

Auditing standards define special purpose financial statements as including those prepared under the following base(s)

An auditor must disclaim an opinion when the auditor lacks independence.

A going concern issue requires a modification of the wording to the three-paragraph standard unqualified audit report (public company).

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

When an auditor expresses an adverse opinion,the opinion paragraph should include

In the auditor's report,the principal auditor decides not to make reference to another CPA who audited a client's subsidiary.The principal auditor could justify this decision if,among other requirements,the principal auditor

Which of the generally accepted auditing standards of reporting would not normally apply to special reports such as cash basis statements?

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 related footnotes,it is the responsibility of the auditor to present the information,if practicable,in the auditor's report and express a(n)

When an auditor reports on financial statements prepared on an entity's income tax basis,the auditor's report should

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

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

Assurance,Attestation,and Internal Auditing Services

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

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