Question

If the auditor believes that there is a remote probability that resolution of an uncertainty will...

If the auditor believes that there is a remote probability that resolution of an uncertainty will have a material effect on the financial statements,which of the following would the auditor issue? a.A disclaimer of opinion. b.A standard unqualified opinion. c.An adverse opinion. d.An unqualified opinion with explanatory paragraphs.

0 0
Add a comment Improve this question Transcribed image text
Answer #1

Solution:

If the auditor believes that there is a remote probability that resolution of an uncertainty will have a material effect on the financial statements, the auditor would issue "A standard unqualified opinion".

Hence option "b" is correct.

Add a comment
Know the answer?
Add Answer to:
If the auditor believes that there is a remote probability that resolution of an uncertainty will...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • 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...

  • A manager is explaining to a staff auditor how various situations might affect the audit opinion....

    A manager is explaining to a staff auditor how various situations might affect the audit opinion. For each of the following scenarios, identify the appropriate reporting option by matching the scenario with the opinion type from the list provided. Assume that any financial statement effect is material, unless otherwise noted and that US auditing standards are followed. -A.B.C.D. The scope of the auditor’s examination is affected by conditions that preclude the application of a necessary auditing procedure it IS very...

  • Principles of auditing Ch3 QUESTION 1 The standard scope paragraph describes in detail the tests, which...

    Principles of auditing Ch3 QUESTION 1 The standard scope paragraph describes in detail the tests, which the auditor performed. True False QUESTION 2 5.5 An explanatory paragraph following an opinion paragraph describes an uncertainty as follows:As discussed in Note X to the financial statements, the company is a defendant in a lawsuit alleging infringement of certain patent rights and claiming damages. Discovery proceedings are in progress. The ultimate outcome of the litigation cannot presently be determined. Accordingly, no provision for...

  • The auditor's responsibility section of the standard audit report states that the auditor is (15 A)...

    The auditor's responsibility section of the standard audit report states that the auditor is (15 A) responsible for the financial statements and the opinion on them B) responsible for the financial statements C) responsible for the opinion on the financial statements .D) jointly responsible for the financial statements with management If the balance sheet of a private company is dated December 31, 2011, the audit report is dated February (16 8, 2012, and both are released on February 15, 2012,...

  • Can you answer these questions? Thank you 18. Misstatements must be compared with some measurement base...

    Can you answer these questions? Thank you 18. Misstatements must be compared with some measurement base before a decision can be made about materiality. A commonly accepted measurement base includes: net income. total assets. working capital. all of the above. soo 19. a. When a qualified or adverse opinion is issued, the qualifying paragraph is inserted: between the introductory and scope paragraphs. b. between the scope and opinion paragraphs. after the opinion paragraph, as a fourth paragraph. immediately after the...

  • l. An auditor has concluded that the financial statements are not fairly presented in that they...

    l. An auditor has concluded that the financial statements are not fairly presented in that they are pervasively misstated. The most appropriate type of audit opinion is: a. Adverse b. Disclaimer c. Qualified d. Unmodified A public company unqualified audit report is least likely to have which of the following titled sections? a. Opinion b. Generally accepted auditing standards c. Basis for opinion d. Critical audit matters

  • 1. Which of the following are the established criteria against which management's assertions are judged in...

    1. Which of the following are the established criteria against which management's assertions are judged in an audit? a- Generally Accepted Accounting Principles - Generally Accepted Auditing Standards C- Consistently Reported Accounting Procedures d- Fairness in application of accounting principles 2. Which of the following criteria is unique to the auditors assurance function? a. General competence b- Familiarity with the particular industry of which the client is part C- Due professional care d- Independence 3. Independent auditing can best be...

  • 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...

  • 46-If the scope restriction imposed by the client is so material that the overall fairness of...

    46-If the scope restriction imposed by the client is so material that the overall fairness of the financial statements is in​ question, the auditor should issue​ a(n) A. adverse opinion. B. standard unmodified opinion. C. disclaimer of opinion. D. unmodified opinion with revised wording in the scope paragraph.

  • 1. Auditors communicate the results of an audit in an audit report. Of the four categories...

    1. Auditors communicate the results of an audit in an audit report. Of the four categories of audit reports, which one indicates that while the auditor believes the financial statements are fairly presented, very material departures from GAAP, and the scope of the audit may have been substantially restricted? a)Adverse or disclaimer b)Qualified c)Standard unqualified d)Unqualified with explanatory paragraph 2. When communicating the purpose of internal controls, it is important to note that internal controls a)can be one hundred percent...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT