International Accounting
5th Edition
ISBN: 9781259747984
Author: Doupnik, Timothy S., Finn, Mark T., Gotti, Giorgio
Publisher: Mcgraw-hill Education,
expand_more
expand_more
format_list_bulleted
Question
Chapter 11, Problem 2EP
To determine
Explain the circumstances under which different types of modified opinion should be expressed.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
List the seven parts of a standard unqualified audit report and explain the meaning of each part. How do the parts compare with those found in a qualified report?
AICPA Independence and Other Services. The Independence Rule of the AICPA Code of Conduct cites several “other services” that do and do not impair audit independence.Required:Go to the AICPA website (www.aicpa.org) and find whether the following items impair independence (Yes) or do not impair independence (No) when performed for audit clients.a. Post the client-approved entries to a client’s trial balance.b. Authorize the client’s customer credit applications.c. Use CPA’s information-processing facilities to prepare the client’s payroll and generate checks for the client treasurer’s signature.d. Sign the client’s quarterly federal payroll tax return.e. Advise client management about the application or financial effect of provisions in an employee benefit plan contract.f. Have emergency signature authority to cosign cash disbursement checks in connection with a client’s hospital benefit plan.
g. As an investment advisory service, provide analyses of a client’s investments in comparison…
In the auditing process
Select one:
a.
the criteria for evaluating information will not vary depending on the information being audited.
b. the audit report communicates the auditor's findings to users.
c. the types and amounts of evidence remain constant from audit to audit
d.
evidence are gathered by the auditor to determine whether the audited information is stated in accordance with SEC standards.
Chapter 11 Solutions
International Accounting
Knowledge Booster
Similar questions
- The AICPA allows an auditor to perform which of the following services for an audit client?arrow_forward1 What is the wording for a disclaimer of opinion? Where is that located in the standards? Must know the auditor’s opinions, may have to do that on the CPA exam. The requirements for these are in the standards as well.arrow_forwardidentify the basic types of audit reports other than the standard unqualified audit report and explain the circumstances under which each type of the report is appropriate.arrow_forward
- Give one example each of when an auditor might render an unmodified opinion and include an emphasis-of-matter paragraph and an other-matter paragraph. What is the value of such paragraphs in the audit report?arrow_forwardThere are three conditions necessitating a departure from an unmodified audit report. Name, discuss and state the appropriate audit report for each of these three conditions.arrow_forwardWhich of the following is not included in the specific objectives of the auditor under ISA 250? a. Planning and performing the audit b. Performing specified audit procedures c. Obtaining sufficient appropriate evidence d. Responding appropriately to non-compliancearrow_forward
- What is the purpose of an external audit by an independent CPA firm? How does an auditor go about conducting an audit? How does a qualified opinion by an auditor differ from an unqualified opinion or an adverse opinion? Paragraph under 100 words pleasearrow_forward93-94 Whenever an auditor issues a qualified report, he or she Group of answer choices a. must not use the terms “subject to” or “except for” in the opinion paragraph. b. may use either the terms “subject to” or “except for” in the opinion paragraph, depending on the nature of the qualification. c. must use the term “subject to” in the opinion paragraph. d. must use the term “except for” in the opinion paragraph. When the scope of the auditor's work has been limited, the audit report should contain a(n): Group of answer choices a. indication that the financial statements are materially misstated because of a departure from PFRS. b. estimate of the financial impact of the scope limitation on the financial statements. c. unqualified opinion if the scope limitation was unavoidable. d. emphasis of matter paragraph that refers to the particular note to the financial statements.arrow_forwardThe auditor has considerable responsibility for notifying users as to whether or not the statements are properly stated. Considering the objective of PSA 200, this imposes upon the auditor a duty to Select one: a. be an insurer of the fairness in the statements. b. provide reasonable assurance that material misstatements will be detected. c. be equally responsible with management for the preparation of the financial statements. d. be a guarantor of the fairness in the statements.arrow_forward
- Explain the difference between the overall audit strategy and the audit plan and state the key contents of the overall strategy document. ISA 230 Audit Documentation requires auditors to document their work. Briefly explain the reasons for auditors documenting their work. ISA 580 Written representations explains the purpose and use of written representations as audit evidence. State six items that could be included in a written representation letter. ISA500 Audit Evidence requires auditors to obtain sufficient appropriate audit evidence to be able to draw reasonable conclusions on which to base their audit opinion. Discuss the different sources of evidence available to auditors and assess their relative appropriateness. What factors should the auditor take into consideration before concluding that a financial statement DO NOT show a True and Fair View?arrow_forwardBesides the search for contingent liabilities and the review for subsequent events, the auditor has four important final evidence accumulation responsibilities, all of which are required by current professional auditing standards. Discuss each of these four responsibilities.arrow_forward
arrow_back_ios
arrow_forward_ios
Recommended textbooks for you
Auditing: A Risk Based-Approach (MindTap Course L...AccountingISBN:9781337619455Author:Karla M Johnstone, Audrey A. Gramling, Larry E. RittenbergPublisher:Cengage Learning
Auditing: A Risk Based-Approach to Conducting a Q...AccountingISBN:9781305080577Author:Karla M Johnstone, Audrey A. Gramling, Larry E. RittenbergPublisher:South-Western College Pub
Auditing: A Risk Based-Approach (MindTap Course L...
Accounting
ISBN:9781337619455
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:Cengage Learning
Auditing: A Risk Based-Approach to Conducting a Q...
Accounting
ISBN:9781305080577
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:South-Western College Pub