obtain reasonable assurance whether the statements are free of material misstatement
the auditors responsibilities section of the standard unmodified opinion report states that the audit is designed to:
The auditors responsibilities paragraph includes a statement that the auditor considers
Which of the following is a correct statement regarding the standard unmodified opinion audit report?
the last day of the auditors responsibiliy for the review of significant events that occured after the date of the financial statements
the audit report date on a standard unmodified opinion audit report indicates:
The audit was conducted in accordance with the generally accepted accounting principles
Which of the following is not explicitly stated in the standard unmodified opinion audit report? CHECK ANSWER
the responsibility of management
The management's responsibilites section the standard unmodified opinion audit report for a nonpublic states that the financial statements are:
Feb 8 2019
If the balance sheet of a private company is dated 12/31/18, the audit report is dated 2/8/19, and both are released on 2/15/19, this indicates that the auditor has searched for subsequent events that occured up to:
the date the auditor completed the auditing procedures in the field
the appropriate audit report date fora standard unmodified opinion audit report for a nonpublic entity should be
adverse
what category of audit report will be issued if the auditor concludes that the financial statements are not fairly presented
either I or II
whenever an auditor issues an audit report for a public company, the auditor can choose to issue a report in which of the following forms?
I. a combined report on financial statements and internal control over financial reporting
II. Separate reports on f
Reports involving other auditors
Examples of unmodified opinions which contain modified working (without adding an emphasis-of-matter paragraph) include:
The entity is suing a competitor for a minor patent infringement
which of the following is least likely to cause uncertainty about the ability of an entity to continue as a going concern
reports involving other auditors
All of the following are causes for the addition of an emphasis of a matter paragraph under both AICPA and PCAOB standards except for:
I or II
When the auditor concludes that there is substantial doubt about the entity's ability to continue as a going concern, the appropriate audit report could be:
I. an unmodifed opinion audit report with an explanatory paragraph
II. a disclaimer of opinoin
a separate paragraph
When a company's financial statements contain a departure from GAAO with which the auditor concurs, the departure should be explained in:
Changes that affect consistency require an explanatory paragraph if they are material
When an auditor is trying to determine how changes can affect consistency and/or comparability, he or she should keep in mind that:
The change from the cost method to the equity method of accounting for investments in common stock
Which of the following requires recognition in the auditors opinion as to consistency?
all of the above
When there is a lack of consistent application in accounting principles,
the scope of the audit has been restricted
As a result of management's refusal to permit the auditor to physically examine inventory, the auditor must depart from the unmodified opinion audit report because:
the overall financial statements are so materially misstated that they do not present fairly the financial position or results of operations and cash flows in conformity with GAAP
An adverse opinion is issued when the auditor believes:
I and III
A qualified opinion can be issued for which of the following:
I. When a limitation on the scope of the audit has occurred
II. When the auditor lacks independence
III. when generally accepted accounting principles have not been used