Principles Of Auditing & Other Assurance Services
21st Edition
ISBN: 9781259916984
Author: WHITTINGTON, Ray, Pany, Kurt
Publisher: Mcgraw-hill Education,
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Question
Chapter 17, Problem 25DOQ
To determine
Identify the type of opinion based on the given content of the beginning of the opinion paragraph.
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Which item regarding an Emphasis of Matter paragraph is true?
a.
The auditor will use the E of M to restrict distribution of the audit report.
b.
The auditor will use the E of M when the client has corrected an error in the previous financial statements.
c.
An E of M will be used when a material error exists in the current financial statements.
d.
The E of M paragraph is usually located immediately before the opinion paragraph.
e.
The E of M paragraph would be used to discuss a client's change in the method to estimate bad debts.
When financial statements contain a departure from GAAP because, due to unusual circumstances, the statements would otherwise be misleading, the auditor should explain the unusual circumstances in a separate paragraph and express an opinion that is.......
Select one:
a. Adverse.
b. Qualified.
c. Qualified or adverse, depending on materiality. "
d. Unqualified.
Which of the following is not a condition before an auditor may add Emphasis of Matter paragraph in the auditor’s report?a. Matter is already fully disclosed in the financial statements.b. No material misstatement exists.c. Not result to modification of opinion.d. Be placed immediately after the opinion.
Chapter 17 Solutions
Principles Of Auditing & Other Assurance Services
Ch. 17 - Prob. 1RQCh. 17 - What is the function of notes to financial...Ch. 17 - Prob. 3RQCh. 17 - Prob. 4RQCh. 17 - Prob. 5RQCh. 17 - Prob. 6RQCh. 17 - Prob. 7RQCh. 17 - Prob. 8RQCh. 17 - Prob. 9RQCh. 17 - Prob. 10RQ
Ch. 17 - Prob. 11RQCh. 17 - Prob. 12RQCh. 17 - Prob. 13RQCh. 17 - Prob. 14RQCh. 17 - Prob. 15RQCh. 17 - Prob. 16RQCh. 17 - Prob. 17RQCh. 17 - Prob. 18RQCh. 17 - Prob. 19RQCh. 17 - Prob. 20RQCh. 17 - Prob. 21QRACh. 17 - Prob. 22QRACh. 17 - Prob. 23QRACh. 17 - Prob. 24QRACh. 17 - Prob. 25AOQCh. 17 - Prob. 25BOQCh. 17 - Prob. 25COQCh. 17 - Prob. 25DOQCh. 17 - Prob. 25EOQCh. 17 - Prob. 25FOQCh. 17 - Prob. 25GOQCh. 17 - Prob. 25HOQCh. 17 - Prob. 25IOQCh. 17 - Prob. 25JOQCh. 17 - Prob. 25KOQCh. 17 - Prob. 25LOQCh. 17 - Prob. 26OQCh. 17 - Prob. 27OQCh. 17 - Prob. 28OQCh. 17 - Prob. 29OQCh. 17 - Prob. 30OQCh. 17 - Prob. 31OQCh. 17 - Prob. 32OQCh. 17 - Prob. 33PCh. 17 - Prob. 34PCh. 17 - Sturdy Corporation (a nonpublic company) owns and...Ch. 17 - Prob. 36PCh. 17 - Prob. 37PCh. 17 - Prob. 38ITCCh. 17 - Prob. 39ITCCh. 17 - Prob. 40RDC
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Similar questions
- Which of the following would not require an explanatorylemphasis-of- matter paragraph in the auditor's report? * Opinion based in part on the report of another auditor. Lack of consistency in the financial statements due to accounting changes. O Additional emphasis. O Going concern.arrow_forwardWhat category of audit report will be issued if the auditor concludes that the financial statementsare not fairly presented? A. qualified B. adverse C. standard unmodified opinion D. disclaimerarrow_forwardwhen the auditor discover a misstatement in the financial statement and this misstatement is considered as material and will affect the overall financial statement fairness , the auditor will issue a : Select one: a. Qualified opinion b. Modified wording opinion c. unqualified with emphasis of matter d. Adverse opinionarrow_forward
- b) Which of the following statements regarding additional information that is included in a document containing audited financial statements is not true? Group of answer choices 1: Additional information can be subject to certain limited procedures by the auditor. 2: Additional information can be the subject of another information opinion. 3: Additional information can be the subject of an in-relation-to opinion. 4: Additional information can be subject to a limited review by the auditor.arrow_forwardQuestion 1 When an auditor issues an adverse opinion, which of the following should be included in the opinion paragraph? The reasons the financial statements are misleading A reference to a separate paragraph that describes the reason for the adverse opinion including a quantification of the impact on the financial statements. A statement that indicates the financial statements are fairly presented except for a reason that is described in the separate paragraph. The financial statement affects of the departure from GAAP.arrow_forwardConsider each situation below independently and describe the interactions between them and descriptions of KAM in the Auditor’s Reporti. The relevant matter requires the Auditor to modify the opinion in accordance with ISA 705 (Revised)Modifications to the Opinion of the Independent Auditor’s Report. ii. The auditor has expressed an Adverse Opinion on the financial statements. iii. The auditor has expressed a Disclaimer Opinion on the financial statements. iv. A Material Uncertainty Related to Going Concern Exists. v. The relevant matter should be highlighted/emphasised. vi. The auditor of this listed entity is unable to determine at least one KAMarrow_forward
- If the auditor concludes that financial statements are not free from material misstatements and the effect of material misstatements are not pervasive to the financial statements. Auditor shall express: Disclaimer of opinionUnmodified opinionAdverse opinionQualified opinionarrow_forwardWhen financial statements are affected by a material departure from generally accepted accounting principles, the auditors should: Withdraw from the engagement. Issue an unmodified opinion with a basis for modification paragraph. Issue an "except for" qualification or a disclaimer of opinion. Issue an "except for" qualification or an adverse opinion.arrow_forwardDepartures from GAAP. For each of the following departures from GAAP, indicate thetype of opinion that the auditors would issue as well as any modifications that would bemade to the standard (unmodified) report.a. A departure that had an immaterial effect on the financial statements.b. A departure that had a material effect on the financial statements (this effect was notpervasive and affected only one account).c. A departure that had a material effect on the financial statements and was pervasive(affected a number of accounts on both the balance sheet and income statement).arrow_forward
- If the auditor expresses an adverse or disclaimer of opinion on the complete set of financialstatements, she or he is not permitted to:a. Express an unmodified opinion on a single financial statement.b. Express an unmodified opinion on an element of the financial statements.c. Express a similar opinion on a single financial statement.d. Perform any of the abovearrow_forward2) During the audit of a client you come to the conclusion that there is minimal likelihood that resolution of an uncertainty will have a material effect on the financial report. Accordingly, assuming nothing else has come to your attention, you should issue: a. A qualified opinion. b. An unmodified opinion. c. An adverse opinion. d. A disclaimer of opinion.arrow_forwardif a change in accounting principle is inseparable from the effect of a change in estimate, this material event should be accounted for as a change in A. Estimate, and the auditor should report on consistency.B. Principle, and the auditor should report on consistencyC. Estimate, and the auditor should not recognize the change in the reportD. Principle, and the auditor should not recognize the change in the reportarrow_forward
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