The following will usually result in a modified report but will not affect the auditor’s opinion, except a

The occurrence of uninsured catastrophe. If the auditor concludes that the fraud or error has a material effect on the financial statements and has not been properly corrected in the financial statements, the auditor should issue a: a. Unqualified opinion with explanatory paragraph. Qualified or disclaimer of opinion. Qualified or adverse opinion. Adverse or disclaimer of opinion. If the auditor is precluded by the entity from obtaining evidence to evaluate whether fraud or error that may be material to the financial statements has, or is likely to have, occurred, the auditor should issue a (n): a. Unqualified opinion with explanatory paragraph. Qualified or adverse opinion. Qualified or disclaimer of opinion. Adverse or disclaimer of opinion.

Addressee d

In which of the following circumstances would an auditor usually choose between expressing a qualified opinion or disclaiming an opinion? Departure from generally accepted accounting principles b. Inadequate disclosure of accounting policies c. Inability to obtain sufficient competent evidential matter d. Unreasonable justification for a change in accounting principle PSA 700 – The Auditor’s Report on Financial Statements 37. The element of the auditor’s report that distinguishes it from reports that might be issued by others is a. Title c. Auditor’s signature b. Opinion paragraph 38. The financial statements audited by the auditor are identified in the a. Opening paragraph c. Opinion paragraph b. Scope paragraph d. All of the above. Which of the following statements can be found on the scope paragraph of the standard audit report?

The financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements based on our audit. We believe that our audit provides a reasonable basis for our opinion. The financial statements ‘present fairly, in all material respects’. Which statement is incorrect regarding the date of the auditor’s report? The auditor should date the report as of the completion date of the audit. The date of the report informs the reader that the auditor has considered the effect on the financial statements and on the report of events and transactions of which the auditor became aware and that occurred up to that date. The auditor should not date the report earlier than the date on which the financial statements are signed or approved by management.

The auditor should date the report as of date the report is delivered to the entity audited. Existence of going concern problem. There is a significant uncertainty (other than a going concern problem), the resolution of which is dependent upon future events and which may affect the financial statements. Emphasis of a matter. There is a disagreement with management regarding the acceptability of the accounting policies selected. In extreme cases, such as situations involving multiple uncertainties that are significant to the financial statements, the auditor may consider it appropriate to express a a. Qualified or adverse opinion c. Unqualified opinion with explanatory paragraph b. Disclaimer of opinion d.

PSA 710 – Comparatives 43. Which statement is incorrect regarding comparatives? The auditor is not required to determine whether the comparatives comply in all material respects with GAAP relevant to the financial statements being audited. There are two broad financial reporting frameworks for comparatives: the corresponding figures and the comparative financial statements. Under the corresponding figures framework, the corresponding figures for the prior period(s) are an integral part of the current period financial statements and have to be read in conounts and other disclosures http://hookupdate.net/es/internationalcupid-review/ relating to the current period. Under the comparative financial statements framework, the comparative financial statements for the prior period(s) are considered separate financial statements. Which statement is incorrect regarding corresponding figures? The corresponding figures are not presented as complete financial statements capable of standing alone.