Exam 4: Reports on Audited Financial Statements

Management has decided that the life of a piece of heavy equipment should be decreased from 15 years to 10 years,thus increasing the annual amortization.The auditor agrees that this amortization period is more reflective of the nature of the asset.The type of audit report that should be issued is ________.

(Multiple Choice)

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Question 21

Green,CPA,was engaged to audit the financial statements of Essex Co.after its fiscal year had ended.The timing of Green's appointment as auditor and the start of field work made confirmation of accounts receivable by direct communication with the debtors impracticable.Green applied other procedures and was satisfied as to the reasonableness of the account balances.Green's auditor's report most likely contained a(n)________.

(Multiple Choice)

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Question 22

Which of the following auditing procedures most likely would assist an auditor in identifying conditions and events that may indicate substantial doubt about an entity's ability to continue as a going concern?

(Multiple Choice)

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Question 23

Auditing standards require that an appropriate communication be issued in all cases where an accountant's name is associated with financial information.

(True/False)

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Question 24

What are the three ways that accountants become associated with financial information issued by an enterprise?

(Essay)

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Question 25

An independent auditor must consider whether the auditee 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 auditor should ________.

(Multiple Choice)

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Question 26

An auditor will issue an adverse opinion when ________.

(Multiple Choice)

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Question 27

An auditor who is reporting on financial statements that contain a material departure from generally accepted accounting principles should include a separate explanatory paragraph and ________.

(Multiple Choice)

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Question 28

The words "except for" should be used in the scope paragraph only if there is a reservation resulting in a disclaimer of opinion or a scope qualification.

(True/False)

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Question 29

Why must a CA issue a report when associated with financial information?

(Essay)

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Question 30

Which level of assurance is provided by a public accountant as a result of an audit?

(Multiple Choice)

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Question 31

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

(Multiple Choice)

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Question 32

By its silence,a clean opinion implies that the financial statement disclosures are reasonably adequate.

(True/False)

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Question 33

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)

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Question 34

In which of the following circumstances is an auditor most likely to express an adverse opinion?

(Multiple Choice)

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Question 35

An audit report included an additional paragraph disclosing a difference of opinion between the auditor and the client.The auditor believed that an adjustment should be made to the financial statements.What should the opinion paragraph of the audit report express?

(Multiple Choice)

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Question 36

Auditors cannot give negative assurance in an audit report.

(True/False)

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Question 37

The term "financial statements" includes all of the footnote disclosures

(True/False)

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Question 38

Moderate assurance is typical in the review report of audited financial statements.

(True/False)

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Question 39

Under which of the following circumstances would a disclaimer of opinion be appropriate?

(Multiple Choice)

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Question 40

Showing 21 - 40 of 47

Which of the following auditing procedures most likely would assist an auditor in identifying conditions and events that may indicate substantial doubt about an entity's ability to continue as a going concern?

Auditing standards require that an appropriate communication be issued in all cases where an accountant's name is associated with financial information.

What are the three ways that accountants become associated with financial information issued by an enterprise?

An independent auditor must consider whether the auditee 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 auditor should ________.

An auditor will issue an adverse opinion when ________.

An auditor who is reporting on financial statements that contain a material departure from generally accepted accounting principles should include a separate explanatory paragraph and ________.

The words "except for" should be used in the scope paragraph only if there is a reservation resulting in a disclaimer of opinion or a scope qualification.

Why must a CA issue a report when associated with financial information?

Which level of assurance is provided by a public accountant as a result of an audit?

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

By its silence,a clean opinion implies that the financial statement disclosures are reasonably adequate.

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 ________.

In which of the following circumstances is an auditor most likely to express an adverse opinion?

An audit report included an additional paragraph disclosing a difference of opinion between the auditor and the client.The auditor believed that an adjustment should be made to the financial statements.What should the opinion paragraph of the audit report express?

Auditors cannot give negative assurance in an audit report.

The term "financial statements" includes all of the footnote disclosures

Moderate assurance is typical in the review report of audited financial statements.

Under which of the following circumstances would a disclaimer of opinion be appropriate?

Introduction to Auditing

Auditors Professional Roles and Responsibilities

Auditors Ethical and Legal Responsibilities

Preliminary Audit Planning: Understanding the Auditees Business

Assessing Risks in an Audit Engagement

Internal Control Over Financial Reporting

Audit Evidence and Assurance

Control Assessment and Testing

Audit Sampling

The Revenues, Receivables, and Receipts Process and Cash Account Balance

The Purchases, Payables, and Payments Process

Payroll and Production Processes

The Finance and Investment Process

hapter 15 Completing the Audit Work

Applying Professional Judgment to Form the Audit Opinion and Issue the Audit Report

Other Public Accounting Services and Reportsreviews and Compilations

Professional Rules of Conduct Details and Auditor Responsibilities

The Audit of Accounting Estimates: Basic Material Relating to Accounting Estimates

Legal Liability Cases

Other Professional Accounting Services and Reports, Including Fraud Auditing

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