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32 views

Add To Book Question Audit Donia

Uploaded by

amir rabie
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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An auditor would issue an adverse opinion if:

A) the audit was begun by other independent auditors who withdrew from the engagement.
B) a qualified opinion cannot be given because the auditor lacks independence.
C) a restriction on the scope of the audit was significant.
D) the statements taken as a whole do not fairly present the financial condition and results of
operations of the company.

Abbot, CPA, as principal auditor for consolidated financial statements, is using a


qualified report of another auditor. Abbot does not consider the qualification material
relative to the consolidated financial statements and Abbot is willing to accept
responsibility for the work of the other auditor. What recognition, if any, must Abbot
make in his report to the report of the other audit?

A) He need make no reference.


B) He must refer to the qualification of the other auditor and qualify his report likewise.
C) He must include the other auditor's report with his report but need not qualify his
report.
D) He must include the other auditor's report with his report and give an explanation of
its significance.
He need make no reference.

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(n):

A) disclaimer of opinion.
B) qualified opinion.
C) review report.
D) unqualified opinion with a separate explanatory paragraph.
Which of the following would not require an explanatory/emphasis-of-matter paragraph in the
auditor's report?

A) Required supplementary information is omitted or departs materially from the requirement of


the applicable financial reporting framework.
B) Lack of comparability in the financial statements due to accounting changes.
C) Going concern.
D) Opinion based in part on the report of another auditor.

When are an auditor's reporting responsibilities not met by attaching an explanation of the
circumstances and a disclaimer of opinion to the entity's financial statement?

A) When the independent auditor with sufficient appropriate evidence believes the financial
statements are not prepared in accordance with GAAP.
B) When the auditor was unable to observe the taking of the physical inventory.
C) When the auditor is not independent.

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

A) a scope limitation or an unjustified accounting change.


B) a scope limitation, but not an unjustified accounting change.
C) an unjustified accounting change, but not a scope limitation.
D) neither an unjustified accounting change nor a scope limitation.

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

A) The auditor did not observe the entity's physical inventory and is unable to become satisfied
as to its balance by other auditing procedures.
B) The financial statements fail to disclose information that is required by generally accepted
accounting principles.
C) The auditor's opinion is based in part on the report of another auditor.

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