Exam 18: Reports on Audited Financial Statements

Which of the following conditions or events most likely would cause an auditor to have substantial doubt about an entity's ability to continue as a going concern?

(Multiple Choice)

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Question 61

An auditor is reporting on cash basis financial statements.These statements are best referred to in his or her report by which one of the following descriptions?

(Multiple Choice)

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Question 62

Which of the following circumstances should be recognized as a consistency modification in the auditor's report,whether or not the item is fully disclosed in the financial statements?

(Multiple Choice)

4.8/5

(82)

Question 63

The adverse effects of events causing an auditor to believe there is substantial doubt about an entity's ability to continue as a going concern would most likely be mitigated by evidence relating to the

(Multiple Choice)

4.8/5

(76)

Question 64

Which of the following would be considered a change that does not affect consistency?

(Multiple Choice)

4.9/5

(87)

Question 65

When reporting on comparative financial statements where the financial statements of the prior year have been examined by a predecessor auditor whose report is not presented,the successor auditor should make

(Multiple Choice)

4.9/5

(76)

Question 66

If a public company issues financial statements that purport to present its financial position and results of operations but omits the statement of cash flows,the auditor ordinarily will express a(an)

(Multiple Choice)

4.8/5

(70)

Question 67

When the audited financial statements of the prior year are presented together with those of the current year,the continuing auditor's report should cover

(Multiple Choice)

4.9/5

(79)

Question 68

An auditor may reasonably issue an "except for" qualified opinion for

(Multiple Choice)

5.0/5

(73)

Question 69

An auditor concludes that there is substantial doubt about an entity's ability to continue as a going concern for a reasonable period of time.If the entity's financial statements adequately disclose its financial difficulties,the auditor's report is required to include an explanatory/emphasis-of-matter paragraph that specifically uses the phrase(s)

(Multiple Choice)

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Question 70

An auditor's report on financial statements prepared in accordance with a basis of accounting other than generally accepted accounting principles should include all of the following except:

(Multiple Choice)

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(81)

Question 71

Management believes and the auditor is satisfied,that a material loss probably will occur when pending litigation is resolved.Management is unable to make a reasonable estimate of the amount or range of the potential loss,but fully discloses the situation in the notes to the financial statements.If the auditor wishes to call attention to the matter and management does not make an accrual in the financial statements,the auditor should issue a(an)

(Multiple Choice)

4.8/5

(77)

Question 72

When the auditor is unable to determine the amounts associated with the illegal acts of client personnel because of an inability to obtain adequate evidence,the auditor should issue a(n)

(Multiple Choice)

4.9/5

(80)

Question 73

Which of the following conditions or events most likely would cause an auditor to have substantial doubt about an entity's ability to continue as a going concern?

(Multiple Choice)

4.9/5

(79)

Question 74

In an engagement to express an opinion on one or more specified elements,accounts,or items of a financial statement,the auditor can generally audit only those specified elements and not the entire set of financial statements.However,the auditor is required to audit the entire set of financial statements if the elements specified include

(Multiple Choice)

4.9/5

(76)

Question 75

Showing 61 - 75 of 75

Which of the following conditions or events most likely would cause an auditor to have substantial doubt about an entity's ability to continue as a going concern?

An auditor is reporting on cash basis financial statements.These statements are best referred to in his or her report by which one of the following descriptions?

Which of the following circumstances should be recognized as a consistency modification in the auditor's report,whether or not the item is fully disclosed in the financial statements?

The adverse effects of events causing an auditor to believe there is substantial doubt about an entity's ability to continue as a going concern would most likely be mitigated by evidence relating to the

Which of the following would be considered a change that does not affect consistency?

When reporting on comparative financial statements where the financial statements of the prior year have been examined by a predecessor auditor whose report is not presented,the successor auditor should make

If a public company issues financial statements that purport to present its financial position and results of operations but omits the statement of cash flows,the auditor ordinarily will express a(an)

When the audited financial statements of the prior year are presented together with those of the current year,the continuing auditor's report should cover

An auditor may reasonably issue an "except for" qualified opinion for

An auditor's report on financial statements prepared in accordance with a basis of accounting other than generally accepted accounting principles should include all of the following except:

When the auditor is unable to determine the amounts associated with the illegal acts of client personnel because of an inability to obtain adequate evidence,the auditor should issue a(n)

Which of the following conditions or events most likely would cause an auditor to have substantial doubt about an entity's ability to continue as a going concern?

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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