When the financial statements are fairly stated but the auditor concludes there is substantial doubt whether the client can continue in existence, the auditor should issue a(n)(1) adverse opinion.(2) qualified opinion only.(3) unqualified opinion.(4) unqualified opinion with explanatory paragraph.

Q: Accountants are permitted to express “negative assurance” in which of the following reports?a.…

A: Auditing is the examination or inspection of the books of accounts or the financial statements by an…

Q: s1: When the auditor includes an Emphasis of Matter paragraph in the auditor's report, the auditor…

A: Solution : False, When the auditor includes an Emphasis of Matter paragraph in the auditor's report,…

Q: 4)  Explain if, and why an accountant will be held liable to: its client,  to 3rd party intended…

A: An accountant owes it to their clients to use sound professional judgement. According to the Revised…

Q: Describe what an auditor should do if an attorney refuses to give information that is within the…

A: This question explains about the attorney's authority and might have a direct impact on the…

Q: The auditor may add an explanatory paragraph to the unqualified audit report in the following…

A: GAAP - It is termed as Generally accepted accounting principle. It is basically an accounting…

Q: A CPA is not independent with respect to a company’s financial statements. The CPA may issue what…

A: Audit report is the opinion expressed by the auditor after careful examination of the books of…

Q: If the auditors encounter a significant scope limitation in evaluating a public company’s internal…

A: Auditing means the inspection of financial accounts of the company to determine if the records are…

Q: ancial reporting framework on a single financial statement or one or more specific elements,…

A: An Auditor is an person who becomes an Auditor after getting professional accounting degree i.e…

Q: When the au

A:

Q: If the auditor found misstatements in financial statements resulting from fraud, the auditor…

A: As per Auditors responsibilities to consider the fraud in an audit of financial Statements.  If The…

Q: S1: The representation letter must be addressed to the board of directors or stockholders of the…

A: Solution: False,  The representation letter must be addressed to the auditor of the company True, he…

Q: While performing your audit of Williams Paper Company, you discover evidence that indicates that…

A: Going Concern: A going concern is a word used in accounting to describe a corporation that has the…

Q: au uditor’sreport.“

A: Part A Going concern is one of the major assumptions involved in a business and this is the issue…

Q: The auditor will issue un-qualified audit report with explanatory paragraph when: Select one: a. The…

A: Auditor need to verify whether the financial statement is giving a true and fair view of the…

Q: Other matters to which the auditor may wish to refer in an Other Matter(s) paragraph but which are…

A: The Other Matter paragraph is the audit report is written to communicate all the necessary matters…

Q: ervasive effects on the financial

A: Pervasive misstatements are misstatement in financial statements that affect the essence of…

Q: Examples of unmodified opinions which contain modified wording (without adding anemphasis-of-matter…

A: Answer:   Option D.

Q: All of the following are causes for the addition of an explanatory paragraph except for: Select one:…

A: Audit report contains the details about the findings of the auditor in the process of audit and…

Q: When the auditor expresses an unqualified opinion, a separate paragraph is added to the report…

A: An Auditor will express an unqualified opinion when financial statements are prepared  in all…

Q: Going Concern” are in an auditor’s statement, the opinion is:   Unqualified   Qualified

A: Auditing - The process of auditing involves examining a company entity's financial statements and…

Q: 23 Choose the circumstances in which financial statements are not true and fair. a. When the…

A: The circumstances in which financial statements are not true and fair when the financial statements…

Q: Which of the following opinions would be issued if auditors believed that the entity’s financial…

A: The audit report offers a summary for a given fiscal year of a company's financial performance.

Q: If the auditor concludes that financial statements are not free from material misstatements and the…

A: Auditing refers to the art of inspecting and investigating financial accounts of a company. It is…

Q: require an explanatorylemphas matter paragraph in the audito report? *

A: Opinion based in part on the report of another auditor-This requires an emphasis of matter paragraph…

Q: When a client’s financial statements contain a material departure from an FASB Statementon…

A: Financial statements: Financial statements are condensed summary of transactions communicated in the…

Q: In which of the following situations would an auditor ordinarily issue an unqualified or unmodified…

A: Emphasis of matter- When as per auditor judgment it is necessary to explain any matter related to…

Q: Which of the following statements, relating to the auditor's responsibilities regarding subsequent…

A: Statement 1 is correct because auditors have a responsibility to perform procedures to identify…

Q: True or False Accounts receivable confirmations are likely to be more effective for the existence…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Statement 1: If management fails to list an unasserted claim in the letter of inquiry to a lawyer,…

A: Auditing is a process in which auditor in which an auditor checks the financial statements of the…

Q: When a contingency is resolved subsequent to the issuance of audited financial statements, which…

A: A contingency is a character or any rationally possible losses and any pledges, including highest…

Q: : When client-imposed restrictions significantly limit the scope of the audit, the auditor generally…

A: Solution: True, When client-imposed restrictions significantly limit the scope of the audit, the…

Q: In an auditor's report the absence of any reference to a material uncertainty about the entity’s…

A: Going concern means the assumption of the entity that it will go on and would be able to pay off its…

Q: When information comes to the auditor's attention that raises substantial doubt about the entity's…

A: Qualified opinion is given where auditor believe that there are some mistakes and rest the financial…

Q: Which of the following statements are not true about auditors responsibilities? a) The financial…

A: The responsibility for preparation and presentation of financial statements is the responsibility of…

Q: What is meant by a “colorable claim”? Do you believe auditors should be liable for investor losses…

A: Legitimate claim of a person is known as Colorable claim. It can be asserted based on the current…

Q: Under what circumstances auditor may express an unqualified opinion? 1. The view presented by the…

A: Auditor's opinion refers to the report, which is issued to the management after a complete audit of…

Q: s1: The concentration of the review of working papers done by the manager auditor and…

A: Answer: s1: The concentration of the review of working papers done by the manager auditor and…

Q: s1: The auditor's report shall include a section with a heading "Responsibilities of Management for…

A: Solution: True,  The auditor's report shall include a section with a heading "Responsibilities of…

Q: The auditors determined that the entity is suffering financial difficulty and its going concern…

A: Unmodified Opinion is given by the auditor when all the financial statements are presented fairly in…

Q: Materiality arises when a misstatement in the financial statements could affect a decision of a…

A: In auditing, materiality is a concept used to determine the significance of financial statement…

Q: If the auditors encounter a significant scope limitation in evaluating a public company's internal…

A: If the auditors encounter a significant scope limitation in evaluating a public company's internal…

Q: A number of cases have considered the auditor’s liability in relation to persons other than the…

A: Generally, it is considered that the auditor's liability in relation to person other than the…