A) The auditors are asked to report on the balance sheet, but not on the other basic financial statements.
B) There is substantial doubt about the entity's ability to continue as a going concern.
C) Management's estimates of the effects of future events on the entity's financial condition, results of operations, and cash flows are unreasonable.
D) Certain transactions cannot be tested because of management's records retention policy.
Correct Answer
verified
Multiple Choice
A) "The critical audit matter communicated is a matter arising from the current period audit…"
B) "We are a public accounting firm registered with the Public Company Accounting Oversight Board…"
C) "Our audit included evaluating the accounting principles used and significant estimates made by management..."
D) "We conducted our audit in accordance with the standards of the PCAOB."
Correct Answer
verified
Multiple Choice
A) Whether the financial statements are presented in accordance with GAAP, or another applicable financial reporting framework.
B) Unusual aspects of the audit examination, such as the involvement of component auditors in the audit of group financial statements.
C) Specific details regarding the audit examination, such as the materiality threshold used to identify material misstatements.
D) Other matters affecting the client, such as substantial doubt about the entity's ability to continue as a going concern.
Correct Answer
verified
Multiple Choice
A) additional use reports.
B) reissued reports.
C) subsequent use reports.
D) updated reports.
Correct Answer
verified
Multiple Choice
A) The entity changed accounting principles having an immaterial effect on the entity's financial position, results of operations, and cash flows.
B) The auditors wish to emphasize a matter regarding the financial statements.
C) The auditors reference component auditors who examined a subsidiary of group financial statements.
D) The auditors have not been able to audit a substantial portion of the balance sheet because of a circumstance-imposed scope limitation.
Correct Answer
verified
Multiple Choice
A) Qualified opinion with reference to departure.
B) adverse opinion with scope limitation reference.
C) adverse opinion with reference to departure.
D) disclaimer of opinion.
Correct Answer
verified
Multiple Choice
A) additional use reports.
B) reissued reports.
C) subsequent use reports.
D) updated reports.
Correct Answer
verified
Multiple Choice
A) involvement of component auditors in the audit of the group financial statements.
B) the portion of the group statements audited by the component auditors not being considered material.
C) group auditors' recognition of the component auditors' competence, reputation, and professional certification.
D) different opinions the auditors are expressing on the components of the financial statements that each audited.
Correct Answer
verified
Multiple Choice
A) prior years' financial statements are restated to conform with generally accepted accounting principles.
B) auditors were predecessor auditors who have been requested by a former client to reissue the previous report.
C) prior years' opinions were unqualified and the opinion on the current year's financial statements is modified due to a lack of consistency.
D) prior years' financial statements are restated following an acquisition in the current year.
Correct Answer
verified
Multiple Choice
A) An unmodified opinion is issued in the current year while a qualified opinion was issued in prior years.
B) A qualified opinion is issued in the current year because of a scope limitation; because this limitation was not encountered in prior years, the opinion issued in those years was unmodified.
C) The updated opinion issued on prior years' financial statements differs from the opinion originally issued on those financial statements.
D) The auditors' unmodified opinion issued on prior years' financial statements is still considered to be appropriate.
Correct Answer
verified
Multiple Choice
A) perform inquiry and analytical procedures to ascertain whether the other information is reasonable.
B) add an emphasis-of-matter paragraph describing the other information to the auditors' report without modifying the opinion on the financial statements.
C) perform the appropriate substantive procedures to corroborate the other information.
D) read the other information to determine that it is consistent with the audited financial statements.
Correct Answer
verified
Multiple Choice
A) Option A
B) Option B
C) Option C
D) Option D
Correct Answer
verified
Multiple Choice
A) "Subject to the departure from generally accepted accounting principles, as described below."
B) "Except for the effects of [XXX] as discussed in the Basis for Opinion section…"
C) "Except for the effects of [XXX] as discussed in the following paragraph…"
D) "Does not present fairly in all material respects."
Correct Answer
verified
Multiple Choice
A) substantive reasons for the prior year's qualification.
B) reason that Hart continued to provide audit services, despite the previous scope limitation.
C) consistency of application of accounting principles between year 2 and year 1.
D) restriction on the distribution of the report.
Correct Answer
verified
Multiple Choice
A) Because this information is not a fundamental part of the financial statements, the auditors have no reporting responsibility with respect to this information.
B) Auditors are required to report on the consistency of other information with the audited financial statements.
C) Auditors are required to provide reasonable assurance with respect to whether the other information is presented in accordance with generally accepted accounting principles.
D) Auditors are required to express an opinion on whether the other information is presented in accordance with generally accepted accounting principles.
Correct Answer
verified
Multiple Choice
A) modify the Opinion Section and Basis for Opinion Section.
B) modify the Opinion Section and Auditor's Responsibilities for the Audit of the Financial Statements Section.
C) modify the Opinion Section, Basis for Opinion Section, and Auditor's Responsibilities for the Audit of the Financial Statements Section.
D) modify the Opinion Section and Basis for Opinion Section and omit the Auditor's Responsibilities for the Audit of the Financial Statements Section.
Correct Answer
verified
Multiple Choice
A) December 31, Year 1.
B) March 1, Year 2.
C) December 31, Year 2.
D) February 15, Year 3.
Correct Answer
verified
Multiple Choice
A) adverse opinion or a disclaimer of opinion.
B) qualified opinion or an adverse opinion.
C) disclaimer of opinion or an unmodified opinion with a separate emphasis-of-matter paragraph.
D) unmodified opinion with a separate emphasis-of-matter paragraph or a qualified opinion.
Correct Answer
verified
Multiple Choice
A) complete with respect to disclosures required by the SEC.
B) fairly stated, in all material respects, in accordance with generally accepted accounting principles.
C) consistent, in all material respects, with the prior years' condensed financial statements.
D) fairly stated, in all material respects, in relation to the complete financial statements.
Correct Answer
verified
Multiple Choice
A) accounting estimates.
B) the format of the Statement of Cash Flows.
C) the classification of financial statement amounts.
D) accounting principles.
Correct Answer
verified
Showing 41 - 60 of 173
Related Exams