Homework Answers
The emphasis of matter may be due to Justified lack of consistency, Going concern doubt or unconsistency.
The answer is Unmodified with qualified emphasis of matter : Yes, Qualified : No
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When an issue is properly disclosed in a client's financial statements, the auditor should issue which...
What type(s) of audit opinion(s) must an auditor issue when the client's financial statements are materially and pervas...
What type(s) of audit opinion(s) must an auditor issue when the client's financial statements are materially and pervasively misstated? O Qualified: yes | Adverse: yes O Qualified: yes | Adverse: no O Qualified: no | Adverse: no O Qualified: no | Adverse: yes
Match each statement below with the type of audit opinion/report that would most likely be issued...
Match each statement below with the type of audit opinion/report that would most likely be issued in the circumstance. Answer choices may be used once, multiple times, or not at all. （1）The auditors determined that sufficient appropriate evidence could not be obtained because inventory records were destroyed in a fire. （2）The client failed to write down certain assets that it determined were impaired. The reasons for reporting the assets at cost instead were disclosed in the notes to the financial...
Which of the preceding situations normally involves the auditor adding an emphasis-of-matter paragraph to the client's...
Which of the preceding situations normally involves the auditor adding an emphasis-of-matter paragraph to the client's audit report? O A consistency modification O An adverse audit opinion O A qualified audit opinion O When a section of the audit has been completed by component auditors
23. The National Association of Insurance Commissioner (NAIC) requires your insurance company client to present certain...
23. The National Association of Insurance Commissioner (NAIC) requires your insurance company client to present certain supplementary information in addition to the basic financial statements. However, while not required for the basic financial statements, your client has omitted the information required by the NAIC. 24. A client holds a note receivable consisting of principal and accrued interest, payable during the next fiscal period. The note's maker recently filed a voluntary bankruptcy petition, but your client failed to reduce the recorded...
1. For each of the following situations, assume that you are reporting on a client’s financial...
1. For each of the following situations, assume that you are reporting on a client’s financial statements. The company is a private company (not publicly held). Unless otherwise stated, assume that the matter involved is material and that the client has refused to make any required adjustments. Types of reports: Unmodified (Unqualified) Modified (Qualified) Disclaimer Adverse Types of paragraphs: A. No additional paragraph B. “Emphasis of matter” paragraph required C. “Basis for” paragraph required D. “Emphasis of matter” paragraph...
1. Internal control has a direct effect on the reliability of internally generated audit evidence True...
1. Internal control has a direct effect on the reliability of internally generated audit evidence True False QUESTION 29 Internal control is not an element of quality control. True False QUESTION 30 The primary purpose of an audit is to express an opinion as to the fairness of the financial statement presentation. False QUESTION 31 If the auditor is uncertain as to the client's ability to continue as a going concern, but the client adequately discloses the situation, then the...
Consider the following statements: I. An Other Matter paragraph “… refers to something that has...
Consider the following statements: I. An Other Matter paragraph “… refers to something that has been appropriately presented or disclosed in the financial statements”. II. The new PCAOB audit report includes a section involving Critical Audit Matters. a. I is true; II is true b. I is true; II is false c. I is false; II is true d. I is false; II is false 2. Consider the following statements: I. Inconsistent...
auditing Part One: True / False Questions (2.5 marks/ question) 1. An aged trial balance of...
auditing
Part One: True / False Questions (2.5 marks/ question) 1. An aged trial balance of accounts receivable may provide evidence on the adequacy of the allowance for uncollectible accounts 2. Confirmation of accounts receivable by direct communication with the debtor tests the existence of accounts receivable. 3. The examination of warehouse receipts is sufficient verification of a material amount of goods stored in public warehouses. 4. The receiving department should accept only goods for which there is an approved...
1 2. Adverse 3 The auditor believes the financial statements are in conformity with GAAP but...
1 2. Adverse 3 The auditor believes the financial statements are in conformity with GAAP but there is a going concern situation. The auditor has specific knowledge that financial statements or disclosures are seriously misstated or misleading The auditor is not able to gather sufficient information that financial statements are in conformity with GAAP. The auditor believes the financial statements are in conformity with GAAP but wishes to draw attention to events subsequent to the balance sheet date. There has...
FINAL CASE STUDY QUESTION IN AUDITING Q11-15 You are currently completing the audit of Erbilek Co...
FINAL CASE STUDY QUESTION IN AUDITING Q11-15 You are currently completing the audit of Erbilek Co for the year ended 31 December 2018. It is planned that the financial statements will be approved on 18 March 2019 and the auditor’s report will be signed on that date. The financial statements will be issued on 5 April 2019. On 31 March 2019, you become aware that Erbilek Co’s major customer has ceased to trade. Audit documentation show that the customer’s account...
What type(s) of audit opinion(s) must an auditor issue when the client's financial statements are materially and pervasively misstated? O Qualified: yes | Adverse: yes O Qualified: yes | Adverse: no O Qualified: no | Adverse: no O Qualified: no | Adverse: yes
Which of the preceding situations normally involves the auditor adding an emphasis-of-matter paragraph to the client's audit report? O A consistency modification O An adverse audit opinion O A qualified audit opinion O When a section of the audit has been completed by component auditors
23. The National Association of Insurance Commissioner (NAIC) requires your insurance company client to present certain supplementary information in addition to the basic financial statements. However, while not required for the basic financial statements, your client has omitted the information required by the NAIC. 24. A client holds a note receivable consisting of principal and accrued interest, payable during the next fiscal period. The note's maker recently filed a voluntary bankruptcy petition, but your client failed to reduce the recorded...
1. Internal control has a direct effect on the reliability of internally generated audit evidence True False QUESTION 29 Internal control is not an element of quality control. True False QUESTION 30 The primary purpose of an audit is to express an opinion as to the fairness of the financial statement presentation. False QUESTION 31 If the auditor is uncertain as to the client's ability to continue as a going concern, but the client adequately discloses the situation, then the...
auditing
Part One: True / False Questions (2.5 marks/ question) 1. An aged trial balance of accounts receivable may provide evidence on the adequacy of the allowance for uncollectible accounts 2. Confirmation of accounts receivable by direct communication with the debtor tests the existence of accounts receivable. 3. The examination of warehouse receipts is sufficient verification of a material amount of goods stored in public warehouses. 4. The receiving department should accept only goods for which there is an approved...
1 2. Adverse 3 The auditor believes the financial statements are in conformity with GAAP but there is a going concern situation. The auditor has specific knowledge that financial statements or disclosures are seriously misstated or misleading The auditor is not able to gather sufficient information that financial statements are in conformity with GAAP. The auditor believes the financial statements are in conformity with GAAP but wishes to draw attention to events subsequent to the balance sheet date. There has...
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