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 39ITC
To determine
Match the opinions given with the scenarios assuming the reporting on the client’s current-year financial statements.
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Identify the three alternative opinions that may be appropriatewhen the client’s financial statements are not in accordance with GAAP. Under whatcircumstance is each appropriate?
Which of the following is usually not filed with the SEC on a regular periodic basis? Choose the correct. a. A Form 10–Qb. A prospectusc. A proxy statementd. A Form 10–K
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.
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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- Which of the following is usually not filed with the SEC on a regular periodic basis?a. A Form 10–Qb. A prospectusc. A proxy statementd. A Form 10–Karrow_forwardte of insurand O D. policy form 21. What is the form that filled out by insured if a loss is suffered? * O A. Loss form B. Completion notes C. Endorsement D. Claim form 22. is the application document used for making the proposal.arrow_forwardState any FOUR (4) procedures that would normally be performed by thepractitioner before any report on the review of client’s financial statementscan be issued.arrow_forward
- What is the formula used to determine the amount repayable to the lender under the Cash Back Option if the borrower decides to refinance their mortgage during the term? Select one: a. (Number of full or partial months remaining in the term / Original Mortgage amount) x (Cashback % / Number of months in the term) b. ((Cashback % x Original Mortgage amount x Number of full or partial months remaining in the term) / Number of months in the term) c. (Original Mortgage amount/Cashback % x Number of full or partial months remaining in the term)/ Number of months in the term d. (Number of full or partial months remaining in the term x Number of months in the term) / (Cashback % x Original Mortgage amount)arrow_forwardUnder which of the following circumstances may member May charge a client a contingent fee? Group of answer choices a. May audits ABC Co. and wishes to charge it a contingent fee for the audit work. b. May audits ABC Co. and wishes to charge it a contingent fee for separate consulting work. c. May is examining prospective financial information for XYZ Co. and wishes to charge it a contingent fee for unrelated consulting services. d. May prepares TUV Co.’s tax returns and wishes to charge it a contingent fee for nontax consulting services.arrow_forwardWhich statement is incorrect? a. The systematic manner of presentation of Notes to F/S is mandatory, as far as practicable.T b. The first item to be presented in the Notes to F/S is the statement of compliance with PFRS. c. The cross reference between each line item in the F/S and any related information disclosed in the Notes to F/S is mandatory. d. None of the above Which statement is incorrect? a. Revenues are income that arises from the ordinary course of business activities. b. Revenues may arise from decrease in liability from primary operations. c. Generally, revenue is recognized when the earning process is complete and a valid promise of payment has been received. d. Revenues arise from sale of goods or services, use of entity resources and disposal of noncurrent assets of the businesses. e. None of the abovearrow_forward
- Which of the following statements is false?Select one:a. A contingent liability should be disclosed in the notes to the financial statements if there is a reasonable possibility that a loss (or expense) will occur.b. A contingent liability should be accrued if the loss is probable and the amount of the loss can be reasonably estimated.c. A contingent liability is a potential obligation that depends on the future outcome of past events.d. All contingent liabilities should be reported as liabilities on the financial statements, even those that are unlikely to occur.arrow_forwardWhich of the following is an arrangement by which one party promises to pay a sum of money to policyholder as protection against an adverse or unfavorable occurrence of event? a. Short Term Loans b. Fixed Deposit c. Insurance d. Investmentarrow_forwardWhen a client has a going concern issue, .AU-C 570 The Auditor’s Consideration of an Entity’s Ability to Continue as a Going Concern requires an _______. emphasis-of-matter paragraph be added to the unmodified report, before the opinion paragraph an emphasis-of-matter paragraph be added to the unmodified report, afterthe opinion paragraph an explanatory paragraph be added to the unmodified report, after the opinion paragraph an explanatory paragraph be added to the unmodified report, before the opinion paragraph Sometimes an audit population may be sufficiently small so that_______. the auditor can ignore the account in question the auditor can audit every item in the population the account in question can be outsourced to the internal audit function for auditing expressed written assurance from senior management pertaining to the account is satisfactory A Type II subsequent event…arrow_forward
- 12. When a practitioner examines projected financial statements, the practitioner's report should include a separate paragraph that: Group of answer choices Describes the limitations on the usefulness of the presentation. Provides an explanation of the differences between an examination and a review. States that the accountant is responsible for events and circumstances for a period not exceeding one year after the report's date. Disclaims an opinion on whether the assumptions provide a reasonable basis for the projection.arrow_forwardC. Endorsement. O D. Claim form. 17. The insurer will issue to the insured before completion of policy form. * O A. certificate of insurance O B. cover note O C. renewal notice D. completion notes 18. A warning on duty to disclose changes affecting the existing policy inspection are sent to insured througharrow_forwardWhich 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.arrow_forward
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