A statement that he auditor believes that his or her audit provides a reasonable basis for expressing negative assurance.
A statement that the auditor's responsibility is to express an opinion on the financial statements
C) A statement that the financial statements in the report are the responsibility of management.
D) A title with the word "independent."
Preparing prospective financial information to verify whether management's plans can be effectively implemented
Projecting conditions and events from one year prior to this year's date (9/30/X0) to 9/30/X1.
Issuing an adverse or negative assurance opinion, depending upon materiality, due to the possible effects on the financial statements
Considering the adequacy of disclosure about the entity's possible inability to continue as a going concern
A) Yes No Yes
B) No Yes Yes
C) No No Yes
D) No No No
A) Yes Yes Yes
B) Yes No Yes
C) No Yes Yes
D) No Yes No
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
B) No Yes Yes
C) No No Yes
D) No No No
A) After the opinion paragraph.
B) Prior to the opinion paragraph.
C) Either before or after the opinion paragraph.
D) An audit report modified for a scope limitation does not include an explanatory paragraph
A) Increase current dividend distributions.
B) Reduce existing lines of credit.
C) Increase ownership equity.
D) Purchase assets formerly leased.
Issue an unqualified opinion, but disclose elsewhere in the report this departure from a customary procedure.
Issue an unqualified opinion with no reference to this omission but be prepared to defend the action
Issue a qualified opinion or a disclaimer, depending on the materiality of the receivables
D) Issue an adverse opinion.
) Provide the information in the audit report, if practicable, and qualify the opinion because of a limitation on the scope of the audit.
Provide the information in the audit report, if practicable, and qualify the opinion because of a departure from GAAP.
Issue a disclaimer of opinion because the client has interfered with the auditor's function of assessing the adequacy of disclosure.
Issue an unqualified opinion, but inform the reader by including the omitted information in the audit report
A) Such assumption of responsibility violates the profession's standards.
In such circumstances, when appropriate requirements have been met, Firm A should issue a standard unqualified opinion on the financial statements
In such circumstances, when appropriate requirements have been met, Firm A should issue an unqualified opinion on the financial statements but should make appropriate reference to Firm B in the audit report.
CPA firm A should normally qualify its audit report on the basis of the scope limitation involved when another CPA firm is involved
Perform analytical procedures aimed particularly at assessing whether bankruptcy is probable.
B) Issue a report with a "going concern" modification when failure is at least reasonably probable.
Based on audit procedures performed, assess whether there is substantial doubt about the entity's ability to continue as a going concern.
Determine that related uncertainties are properly disclosed and make no mention in the audit report
Express an adverse opinion with an explanatory paragraph disclosing the reason (the accounting change) for the opinion
Express an unqualified opinion with an explanatory paragraph and disclose the accounting change from 20X3 and its effect on the financial statements
C) Disclaim an opinion and explain all of the reasons therefore.
Express an adverse opinion regarding the 20X4 financial statements, without an explanatory paragraph disclosing the reason therefore since it will be included in the notes to the statements.
A) Issue an unqualified report with an explanatory paragraph.
B) Withdraw from the engagement.
C) Issue an "except for" qualification or an adverse opinion.
D) Issue an "except for" qualification or a disclaimer of opinion.
A) A change in the estimated useful lives of a class of fixed assets.
B) A write-off of a patent because future benefits do not appear to exist.
A change from the straight line method of depreciation to an accelerated method for a class of fixed assets.
A change in calculating bad debt expense from one percent to two percent of credit sales
A) Introductory paragraph.
B) Scope paragraph.
C) Opinion paragraph.
D) Explanatory paragraph.