The statements are not in conformity with the FASB Statements regarding the capitalization of leases
Information comes to the auditor's attention that raises substantial doubt about the entity's ability to continue in existence.
The chief executive officer refuses the auditor access to minutes of board of directors' meetings
Tests of controls show that the entity's internal control is so poor that it can not be relied upon
A) Issuance of the report.
B) Completion of the auditor's most recent field work.
C) Latest financial statements being reported on.
D) Last related-party transaction disclosed in the statements.
A) A change in accounting estimate.
B) A change from an unacceptable accounting principle to a generally accepted one.
C) Correction of an error not involving a change in accounting principle.
D) A change in classification.
Magnitude of the portion of the financial statements examined by the other auditor.
B) Name of the other auditor.
C) Name of the consolidated subsidiary examined by the other auditor.
D) Type of opinion expressed by the other auditor.
A) "Subject to" qualified opinion.
B) Disclaimer of opinion.
C) Adverse opinion.
D) Unqualified opinion with a separate explanatory paragraph.
May accept the engagement because such engagements merely involve limited reporting objectives
May accept the engagement but should disclaim an opinion because of an inability to apply the procedures considered necessary
C) Should refuse the engagement because there is a client-imposed scope limitation.
Should refuse the engagement because of a departure from generally accepted auditing standards
A) Expressing dual dated opinions.
Updating the report on the previous financial statements only if there has not been a change in the opinion
Updating the report on the previous financial statements only if the previous report was qualified and the reasons for the qualification no longer exist
Updating the report on the previous financial statements regardless of the opinion previously issued.
A) Referred to in the auditor's report for the current year.
B) Disclosed in the notes to the financial statements of the current year.
C) Disclosed in the notes to the financial statements and referred to in the auditor's
D) Treated as a subsequent event.
A) The reasons why the predecessor auditor's report is not presented.
B) The identity of the predecessor auditor who examined the financial statements of the prior year.
Whether the predecessor auditor's review of the current year's financial statements revealed any matter that might have a material effect on the successor auditor's opinion.
D) The type of opinion expressed by the predecessor auditor.
A) Must not refer to the audit of the other CPA.
B) Must refer to the audit of the other CPA.
C) May refer to the audit of the other CPA.
May refer to the audit of the other CPA, in which case Morgan must include in the audit report on the consolidated financial statements a qualified opinion with respect to the audit of the other CPA.
A) The introductory, scope, and opinion paragraphs of the report.
B) Only the scope paragraph of the report.
C) Only the opinion paragraph of the report.
D) Only the opinion paragraph of the report and include an explanatory paragraph.
A) The CPA from reporting on one basic financial statement and not the others.
Misinterpretations regarding the degree of responsibility that the auditor is assuming.
The CPA from expressing different opinions on each of the basic financial statements
Management from reducing its final responsibility for the basic financial statements.
A) A standard unqualified opinion.
B) An unqualified opinion and an explanatory paragraph.
C) Either a qualified opinion or a disclaimer of opinion.
D) An "except for" qualification.
Asks the auditor to report on the balance sheet and not on the other basic financial statements.
B) Refuses to permit its lawyer to respond to the letter of audit inquiry.
Discloses material related party transactions in the notes to the financial statements
D) Knows that confirmation of accounts receivable is not feasible.
A) Unqualified opinion with an appropriate explanatory paragraph.
B) "Except for" qualified opinion.
C) Standard unqualified opinion.
D) Adverse opinion.
A) The auditor is not independent with respect to the enterprise being audited.
B) The statements are not in conformity with generally accepted accounting
The statements are not in conformity with generally accepted accounting principles regarding pension plans
A client-imposed scope limitation prevents the auditor from complying with generally accepted auditing standards.
A) Be appropriate in the circumstances for the particular entity.
Reflect transactions in a manner that presents the financial statements within a range of acceptable limits.
Present information in the financial statements that is classified and summarized in a reasonable manner
D) Be applied on a basis consistent with those followed in the prior year.
A) Explicitly Explicitly
B) Implicitly Implicitly
C) Implicitly Explicitly
D) Explicitly Implicitly
A) Only the current year under audit.
B) Either one or both years at the option of the auditors.
C) Each of the two years plus the preceding year.
D) Each of the years in the two-year period.
A) Restrictions imposed by the client.
B) Reliance placed upon the report of other auditors.
C) Inability to obtain sufficient competent evidential matter.
D) Inadequacy in the accounting records.