Select the necessary words from the list of possibilities to complete the following statements:  adverse, basis for modification paragraph(or basis for qualified opinion paragraph, CPA firm, disclaimer of opinion, expressing an opinion, management, unmodified, unqualified, update           Statements Answer 1. If the auditors have examined the prior year's financial statements presented for comparative purposes, they should __________ their opinion for any new information.                     5. All nonpublic company audit reports that are qualified should contain a(n) __________ explaining the details of the qualification.

The reporting principle requires auditors to express their opinion through the issuance of a written report. Required: a. What is the purpose of the. auditors' opinion and report? b. What are the major sections in the auditors' report on the examination of an issuer? What are the major contents of each of these sections? c. What are the four types of opinions that auditors can issue? d . How does the concept of materiality influence the auditors' report?

Task 1:The senior accountant has identified three misstatements that have been carried forward onto the summary of proposed audit adjustments. Determine the impact of the identified misstatements on the financial statement ratios noted below. For each of the identified misstatements below, indicate the impact on the financial ratio identified. In columns D and E, select the impact, if any, that the misstatement has on the financial ratio from the option list. Selections used once, more than once, or are not at all. Consider each misstatement independently. Choices for Columns D and E:  decrease increase no impact A B C D E 1 Account Debit Credit Impact on current ratio Impact on profit margin 2 Payroll expense 72,000           3 Accrued payroll   72,000 4   5 Depreciation expense 125,000           6 Accumulated depreciation   125,000 7   8 Prepaid insurance 15,000…

The audit report date on a standard unmodified opinion audit report indicates A. the last day of the fiscal period. B. the last day of the auditor's responsibility for the review of significant events that occurred after the date of the financial statements. O C. the date on which the financial statements were filed with the Securities and Exchange Commission. D. the last date on which users may institute a lawsuit against either the client or the auditor.

S1: Most of the audit procedures in examining the financial statement components are performed by the junior or associate auditors. S2: At the completion stage, the reviewer of working papers should check if the approved adjusting journal entries have been properly posted and the amounts in the working trial balance agree with the amounts shown in the lead schedules.    a. BOTH STATEMENTS ARE TRUE b. BOTH STATEMENTS ARE FALSE c. ONLY S1 IS TRUE d. ONLY S2 IS TRUE

Which of the following are the auditor's responsibilities when it comes to the financial stațements? 1. Giving an opinion as to their truth and fairness. 1, 3 and 4 only 1, 2 and 3 only 1 and 2 only 2 and 3 Only 2. Selecting and applying accounting policies. 3. Gathering evidence to support the opinion given. 4. Planning and conducting the audit.

The standard unqualified opinion based on the audit of a public company's financial statements includes a. A discussion of Key Audit Matters if KAMs are discovered. b. A reference to Key Audit Matters if no KAMs are discovered. c. A statement that the CPA firm is registered with the AICPA. d. An indication of how long the firm has served as the company's auditors. e. A Basis for Opinion section preceding the Opinion of Financial Statements section.

25. Which of the following would not be included in an accountant's review report on the financial statements of a nonpublic entity? Group of answer choices   A statement that the review was made in accordance with generally accepted auditing standards.   A statement that all information included in the financial statements is the representation of management.   A statement describing the principal procedures performed.   A statement describing the auditor's conclusions based on the results of the review.

Question 4 Respond to each of the following independent situations involving auditor reports. For each· scenario (1)identify the reporting issue involved; (2) explain the type of opinion that should be- issued; (3)identify any requiredmodifications of the standard auditor'sreport.b The audit client has engaged in a significant number of related party transactions during the year. The auditor-believes that disclosure of these transactions is essentialto: comply with GAAP, and that the transactions have a highly material and pervasive effect on the financial statem ents. However, the client has refusedto make the required- financial statement disclosures. 4.4 A client refusesto allowthe auditors to confirm the accounts receivable. The potential· effects of relatedmisstatements on the financial statements are highly material and- pervasive. The auditors are unable to satisfy themselvesregarding the receivable and- sales balances by using alternative auditing procedures. 5. The auditor has…

Who is the auditor for Target? What type of opinion are they giving on Target’s financial statements? (page 32) Refer to “Types of Auditor’s Opinions document.