Exam 3: Audit Reports

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A client has changed their method of valuing inventory from FIFO to LIFO and the change has a material effect on the financial statements. If the auditor does not concur with the appropriateness of the change, the auditor should issue a(n):

(Multiple Choice)

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Question 101

Auditors of public company financial statements must issue separate reports on internal control over financial reporting.

(True/False)

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Question 102

An auditor who issues a qualified opinion because sufficient appropriate evidence was not obtained should describe the limitations in an explanatory paragraph. The auditor should also modify the:

(Multiple Choice)

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Question 103

When dealing with materiality and scope limitation conditions:

(Multiple Choice)

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Question 104

Which of the following requires recognition in the auditor's opinion as to consistency?

(Multiple Choice)

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Question 105

An auditor can express a qualified opinion due to a:

(Multiple Choice)

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Question 106

The phrase "auditing standards generally accepted in the United States of America" can be found in the opinion paragraph of a standard, unqualified audit report for a public company.

(True/False)

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Question 107

When an auditor relies upon a different CPA firm to perform part of the audit and chooses to issue a shared opinion, only the auditor's responsibility paragraph should be modified.

(True/False)

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Question 108

Auditors should issue a disclaimer of opinion when there is a highly material client-imposed scope restriction.

(True/False)

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Question 109

Auditing standards require that the audit report must be titled and that the title must:

(Multiple Choice)

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Question 110

Subsequent to the close of Spacely Sprockets fiscal year ending October 31, 2012, a major debtor has declared bankruptcy due to a series of events. The receivable is significantly material in relation to the financial statements, and recovery is doubtful. The debtor had confirmed the full amount due to Spacely Sprocket at the balance sheet date. Because the account was confirmed at the balance sheet date, Spacely refuses to disclose any information in relation to this subsequent event. The CPA believes that all other accounts were stated fairly at the balance sheet date. In addition, Spacely changed their method of inventory valuation from FIFO to LIFO. This change was disclosed in Note X to the financial statements. Accordingly, what type of opinion should be expressed?

(Multiple Choice)

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Question 111

Audit reports issued for financial statements of a public company should refer to generally accepted auditing standards in the scope paragraph.

(True/False)

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Question 112

Which of the following scenarios does not result in a qualified opinion?

(Multiple Choice)

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Question 113

The independent auditor must issue a qualified opinion when which of the financial(s) are missing? I. Balance Sheet II. Income Statement III. Statement of Cash Flows

(Multiple Choice)

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Question 114

Discuss how materiality affects audit reporting decisions.

(Essay)

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Question 115

The standard unqualified audit report:

(Multiple Choice)

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Question 116

The most common case in which conditions beyond the client's and auditor's control cause a scope restriction is an engagement:

(Multiple Choice)

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Question 117

The introductory paragraph of the standard audit report for a non-profit company performs which functions? I. States the CPA has performed an audit. II. Lists the financials being audited. III. States the financials are the responsibility of the auditor.

(Multiple Choice)

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Question 118

If an auditor performs an audit of a public company, the scope paragraph should make reference to which standards?

(Multiple Choice)

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Question 119

The explanatory paragraph for a qualified opinion would:

(Multiple Choice)

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Question 120

Showing 101 - 120 of 139

Exam 3: Audit Reports

A client has changed their method of valuing inventory from FIFO to LIFO and the change has a material effect on the financial statements. If the auditor does not concur with the appropriateness of the change, the auditor should issue a(n):

Auditors of public company financial statements must issue separate reports on internal control over financial reporting.

An auditor who issues a qualified opinion because sufficient appropriate evidence was not obtained should describe the limitations in an explanatory paragraph. The auditor should also modify the:

When dealing with materiality and scope limitation conditions:

Which of the following requires recognition in the auditor's opinion as to consistency?

An auditor can express a qualified opinion due to a:

The phrase "auditing standards generally accepted in the United States of America" can be found in the opinion paragraph of a standard, unqualified audit report for a public company.

When an auditor relies upon a different CPA firm to perform part of the audit and chooses to issue a shared opinion, only the auditor's responsibility paragraph should be modified.

Auditors should issue a disclaimer of opinion when there is a highly material client-imposed scope restriction.

Auditing standards require that the audit report must be titled and that the title must:

Audit reports issued for financial statements of a public company should refer to generally accepted auditing standards in the scope paragraph.

Which of the following scenarios does not result in a qualified opinion?

The independent auditor must issue a qualified opinion when which of the financial(s) are missing? I. Balance Sheet II. Income Statement III. Statement of Cash Flows

Discuss how materiality affects audit reporting decisions.

The standard unqualified audit report:

The most common case in which conditions beyond the client's and auditor's control cause a scope restriction is an engagement:

The introductory paragraph of the standard audit report for a non-profit company performs which functions? I. States the CPA has performed an audit. II. Lists the financials being audited. III. States the financials are the responsibility of the auditor.

If an auditor performs an audit of a public company, the scope paragraph should make reference to which standards?

The explanatory paragraph for a qualified opinion would:

The Demand for Audit and Other Assurance Services

The CPA Profession

Professional Ethics

Legal Liability

The CPA Profession

Audit Evidence

Audit Planning and Analytical Procedures

Materiality and Risk

Section 404 Audits of Internal Control and Control Risk

Fraud Auditing

The Impact of Information Technology on the Audit Process

Overall Audit Plan and Audit Program

Audit of the Sales and Collection Cycle: Tests of Controls and Substantive Tests of Transactions

Audit Sampling for Tests of Controls and Substantive Tests of Transactions

Completing the Tests in the Sales and Collection Cycle: Accounts Receivable

Audit Sampling for Tests of Details and Balances

Audit of the Acquisition and Payment Cycle: Tests of Controls and Substantive Tests of Transactions, and Accounts Payable

Completing the Tests in the Acquisition and Payment Cycle: Verification of Selected Accounts

Audit of the Payroll and Personnel Cycle

Audit of the Inventory and Warehousing Cycle

Audit of the Capital Acquisition and Repayment Cycle

Audit of Cash Balances

Completing the Audit

Other Assurance Services

Internal and Governmental Financial Auditing and Operational Auditing

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