Auditing Final Part 2

47 Questions  I  By Millerisawesome
Auditing Final Part 2
This is for chapter 17 the final part of the auditing segment.

This will be awesome i can not wait.

  
Changes are done, please start the quiz.


Question Excerpt

Removing question excerpt is a premium feature

Upgrade and get a lot more done!
1.  1. Audit reports should be dated the date on which the financial statements are issued.
A.
B.
2.  When the auditors are unable to comply with generally accepted auditing standards, they should issue an opinion that is unqualified, but include an additional explanatory paragraph in the report.
A.
B.
3.  When evaluating the results of audit tests, materiality depends upon both the dollar amount and the nature of the item
A.
B.
4.  . A public company's financial statements should be prepared following standards of the Public Company Accounting Oversight Board
A.
B.
5.  If financial statements fail to disclose a material fact, the auditors may disclose the information in an explanatory paragraph and issue an unqualified opinion on the statements.
A.
B.
6.  If financial statements contain a material departure from generally accepted accounting principles, the auditors usually should not issue an unqualified opinion
A.
B.
7.  A "very material" change from one generally accepted accounting principle to another generally accepted accounting principle usually results in an adverse opinion by the auditors.
A.
B.
8.  When there is a significant question about a company's ability to remain a going concern, the report issued is usually unqualified with an explanatory paragraph. 
A.
B.
9.  9. A client imposed scope limitation will generally result in a disclaimer of opinion.
A.
B.
10.  Regulation S-X governs the form and content of financial statements filed with the SEC.
A.
B.
11.  11. Which of the following is not explicitly included in an audit report? .
A.
B.
C.
D.
12.  When an auditor has concluded there is substantial doubt about an entity's ability to continue as a going concern for a reasonable period of time beyond the current financial statement date (9/30/X1), the auditor's responsibility includes
A.
B.
C.
D.
13.  When an auditor issues an adverse opinion an explanatory paragraph is added. In addition, which, if any, paragraphs to the report are modified?
A.
B.
C.
D.
14.  When an auditor issues a qualified report due to a scope limitation an explanatory paragraph is added. In addition, which, if any, paragraphs to the report are modified? Introductory Scope Opinion
A.
B.
C.
D.
15.  When an auditor issues an unqualified report, but adds an emphasis of a matter paragraph to the report, which, if any, paragraphs to the report are modified? Introductory Scope Opinion
A.
B.
C.
D.
16.  16. An explanatory paragraph relating to a scope limitation should be placed.
A.
B.
C.
D.
17.  After considering an entity's negative trends and financial difficulties, an auditor has substantial doubt about the entity's ability to continue as a going concern. The auditor's considerations relating to management's plans for dealing with the adverse effects of these conditions most likely would include management's plans to:
A.
B.
C.
D.
18.  When a CPA does not confirm material accounts receivable, but is satisfied by the application of alternative auditing procedures, she normally should:
A.
B.
C.
D.
19.  When a client declines to disclose essential information in the financial statements or notes, the CPA should:
A.
B.
C.
D.
20.  Firm A has performed most of the audit of Consolidated Company's financial statements and qualifies as the principal auditor. CPA Firm B did the remainder of the work. Firm A wishes to assume full responsibility for Firm B's work. Which of the following statements is correct?
A.
B.
C.
D.
21.  Which of the following is most accurate with respect to a CPA's responsibility in considering a going concern question on audits?
A.
B.
C.
D.
22.  The Rotter Company changed accounting principles in 20X4 from those followed in 20X3. The auditor believes that the new principles are not in conformity with GAAP, and therefore that the 20X4 financial statements are misleading. The change (including its dollar effect) has been described in the notes to the 20X4 statements, which are being presented by themselves. Under these circumstances, in reporting on the 20X4 financial statements, the auditor should:
A.
B.
C.
D.
23.  When financial statements are affected by a material departure from generally accepted accounting principles, the auditors should:
A.
B.
C.
D.
24.  . Which of the following accounting changes requires explanatory language regarding consistency in the auditors' report?
A.
B.
C.
D.
25.  25. The first paragraph of a standard unqualified audit report is referred to as the:
A.
B.
C.
D.
26.  26. A scope restriction is least likely to result in a(an):
A.
B.
C.
D.
27.  Which of the following is least likely to result in explanatory language being added to an unqualified auditor's report on a client that sells jewelry through a retail store?
A.
B.
C.
D.
28.  28. Which of the following statements is correct with respect to explanatory paragraphs?
A.
B.
C.
D.
29.  A client has changed the salvage values of a number of its fixed assets. The auditors believe that the salvage values are realistic. The appropriate report is:
A.
B.
C.
D.
30.  Which of the following would be most likely to be an appropriate addressee for an audit report?
A.
B.
C.
D.
31.  31. The term "except for" in an audit report is:
A.
B.
C.
D.
32.  The unqualified standard audit report of a nonpublic company does not explicitly state that:
A.
B.
C.
D.
33.  Which of the following is not a difference between the audit report of a nonpublic and public company
A.
B.
C.
D.
34.  . If audited financial statements include a balance sheet and an income statement, but do not include a statement of cash flows:
A.
B.
C.
D.
35.  Which of the following circumstances generally results in the issuance of a report that is other than unqualified
A.
B.
C.
D.
36.  Which of the following modifications of the auditors' report does not include an additional paragraph
A.
B.
C.
D.
37.  If the predecessor auditors fail to reissue their audit report on comparative financial statements the successor auditors should
A.
B.
C.
D.
38.  An audit client has refused to allow the auditors to perform a generally accepted auditing procedure. The circumstance would normally result in the issuance of:
A.
B.
C.
D.
39.  Which of the following is a "registration statement" that is filed with the SEC by a company planning to issue securities to the public
A.
B.
C.
D.
40.  If principal auditors make no reference to other auditors whose work they have relied on as a part of the basis for their report, the principal auditors
A.
B.
C.
D.
41.  After performing all necessary procedures the predecessor auditors reissue a priorperiod report on financial statements at the request of the client without revising the original wording. The predecessor auditors should
A.
B.
C.
D.
42.  When an adverse opinion is expressed, the opinion paragraph should include a direct reference to:
A.
B.
C.
D.
43.  Under which of the following set of circumstances might the auditors disclaim an opinion?
A.
B.
C.
D.
44.  The management of Stanley Corporation has decided not to account for a material transaction in accordance with the provisions of a recent statement of the FASB. They have set forth their reasons in note "B" of the financial statements, which clearly demonstrates that due to unusual circumstances the financial statements would otherwise have been misleading. The auditors' report will probably contain a(a
A.
B.
C.
D.
45.  The auditors include explanatory language in an otherwise unqualified report in order to emphasize that the entity being reported upon is a subsidiary of another business enterprise. The inclusion of this explanatory language
A.
B.
C.
D.
46.  . It is not appropriate for the auditors' report to refer a reader to a financial statement note for details regarding a(an
A.
B.
C.
47.  Which of the following best describes the reference to the expression "taken as a whole" in the fourth generally accepted auditing standard of reporting
A.
B.
C.
D.
Back to top


to post comments.

Removing ad is a premium feature

Upgrade and get a lot more done!
Take Another Quiz