When there has been a change in accounting principle that materially affects the comparability of the comparative financial statements presented for a public company and the auditor concurs with the change,the auditor should \(\begin{array} { l l l } \text { Concur Explicitly } & \text { Issue an "Except for" } & \text { Refer to the Change in } \\ \underline{\text { In the Change }} &\underline{ \text { Qualified Opinion }} & \underline{\text { an Explanatory Paragraph} } \\\end{array}\) A.\(\begin{array} { l l l } \text { No } &\quad\quad\quad\quad\quad\quad\quad\quad \text { No } &\quad\quad\quad\quad\quad\quad\quad \text { Yes } \\\end{array}\) B.\(\begin{array} { l l l } \text { Yes } & \quad\quad\quad\quad\quad\quad\quad\quad \text { No } &\quad\quad\quad\quad\quad\quad\quad \text { Yes } \\\end{array}\) C.\(\begin{array} { l l l } \text { Yes } &\quad\quad\quad\quad\quad\quad\quad\quad \text { Yes } &\quad\quad\quad\quad\quad\quad\quad \text { No } \\\end{array}\) D.\(\begin{array} { l l l } \text { No } &\quad\quad\quad\quad\quad\quad\quad\quad \text { Yes } &\quad\quad\quad\quad\quad\quad\quad \text { No }\end{array}\)

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

Exam 18: Reports on Audited Financial Statements

The following four situations require a modification to the standard unqualified/unmodified audit report.Identify the modification required for each. a.Opinion based in part on the report of another auditor. b.Going concern. c.Lack of consistency. d.Additional emphasis.

(Essay)

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(78)

Question 41

The predecessor auditor,after properly communicating with the successor auditor,has reissued a report because the audit client desires comparative financial statements.The predecessor auditor's report should make

(Multiple Choice)

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(77)

Question 42

A special report related to compliance with contractual provisions provides

(Multiple Choice)

4.8/5

(87)

Question 43

Which of the following would be considered a change that affects consistency?

(Multiple Choice)

4.8/5

(78)

Question 44

An auditor was unable to obtain audited financial statements or other evidence supporting an entity's investment in a large foreign subsidiary.Between which of the following reports should the auditor choose?

(Multiple Choice)

4.9/5

(83)

Question 45

Which of the following circumstances normally does not affect the consistency phrase in the auditor's standard report?

(Multiple Choice)

4.9/5

(77)

Question 46

In connection with the examination of the consolidated financial statements of Mott Industries,Frazier,CPA,plans to refer to another CPA's examination of the financial statements of a subsidiary company.Under these circumstances,Frazier's report must disclose

(Multiple Choice)

4.9/5

(85)

Question 47

A CPA who is not independent and is associated with financial statements should disclaim an opinion with respect to those financial statements.The disclaimer should

(Multiple Choice)

4.8/5

(69)

Question 48

The choice of which audit report to issue depends on the condition and the materiality of any departure.

(True/False)

4.7/5

(90)

Question 49

When an auditor concludes there is substantial doubt about an entity's ability to continue as a going concern for a reasonable period of time,the auditor's responsibility is to

(Multiple Choice)

4.9/5

(74)

Question 50

What is an auditor's responsibility for supplementary information,such as segment information,that is outside the basic financial statements,but required by the FASB?

(Multiple Choice)

4.9/5

(82)

Question 51

A scope limitation sufficient to preclude an unqualified opinion always will result when management

(Multiple Choice)

4.9/5

(79)

Question 52

An engagement to express an opinion on a system of internal control will generally

(Multiple Choice)

4.9/5

(69)

Question 53

When comparative financial statements are presented,the fourth standard of reporting,which refers to financial statements "taken as a whole," should be considered to apply to the financial statements of the

(Multiple Choice)

4.9/5

(83)

Question 54

When there has been a change in accounting principle that materially affects the comparability of the comparative financial statements presented for a public company and the auditor concurs with the change,the auditor should Concur Explicitly Issue an "Except for" Refer to the Change in A. No No Yes B. Yes No Yes C. Yes Yes No D. No Yes No

(Multiple Choice)

4.9/5

(66)

Question 55

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

(Multiple Choice)

4.9/5

(72)

Question 56

A predecessor auditor should complete the following before reissuing a report on statements presented on a comparative basis:

(Multiple Choice)

4.9/5

(83)

Question 57

When expressing an opinion on a specified account or item in the financial statements,the auditor need only consider that account or item.However,the auditor must have audited the entire set of financial statements if this engagement requires a report on the entity's

(Multiple Choice)

4.9/5

(73)

Question 58

An auditor includes a separate paragraph in an otherwise unmodified report to emphasize that the entity being reported on had significant transactions with related parties.The inclusion of this separate paragraph

(Multiple Choice)

4.9/5

(85)

Question 59

When a question arises about an entity's continued existence,the auditor should consider factors tending to mitigate the significance of negative information concerning the entity's means for maintaining adequate cash flow.An example of such a factor is the

(Multiple Choice)

5.0/5

(82)

Question 60

Showing 41 - 60 of 75

The following four situations require a modification to the standard unqualified/unmodified audit report.Identify the modification required for each. a.Opinion based in part on the report of another auditor. b.Going concern. c.Lack of consistency. d.Additional emphasis.

The predecessor auditor,after properly communicating with the successor auditor,has reissued a report because the audit client desires comparative financial statements.The predecessor auditor's report should make

A special report related to compliance with contractual provisions provides

Which of the following would be considered a change that affects consistency?

An auditor was unable to obtain audited financial statements or other evidence supporting an entity's investment in a large foreign subsidiary.Between which of the following reports should the auditor choose?

Which of the following circumstances normally does not affect the consistency phrase in the auditor's standard report?

In connection with the examination of the consolidated financial statements of Mott Industries,Frazier,CPA,plans to refer to another CPA's examination of the financial statements of a subsidiary company.Under these circumstances,Frazier's report must disclose

A CPA who is not independent and is associated with financial statements should disclaim an opinion with respect to those financial statements.The disclaimer should

The choice of which audit report to issue depends on the condition and the materiality of any departure.

When an auditor concludes there is substantial doubt about an entity's ability to continue as a going concern for a reasonable period of time,the auditor's responsibility is to

What is an auditor's responsibility for supplementary information,such as segment information,that is outside the basic financial statements,but required by the FASB?

A scope limitation sufficient to preclude an unqualified opinion always will result when management

An engagement to express an opinion on a system of internal control will generally

When comparative financial statements are presented,the fourth standard of reporting,which refers to financial statements "taken as a whole," should be considered to apply to the financial statements of the

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

A predecessor auditor should complete the following before reissuing a report on statements presented on a comparative basis:

When expressing an opinion on a specified account or item in the financial statements,the auditor need only consider that account or item.However,the auditor must have audited the entire set of financial statements if this engagement requires a report on the entity's

An auditor includes a separate paragraph in an otherwise unmodified report to emphasize that the entity being reported on had significant transactions with related parties.The inclusion of this separate paragraph

When a question arises about an entity's continued existence,the auditor should consider factors tending to mitigate the significance of negative information concerning the entity's means for maintaining adequate cash flow.An example of such a factor is the

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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