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 2, Problem 30LOQ
To determine
Identify the most appropriate type of audit opinion in the given case.
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What is the appropriate nature of opinion when the auditor is unable to obtain sufficient appropriate audit evidence on which to base the opinion, but the auditor concludes that the possible effects on the financial statements of undetected misstatements, if any, could be material but not pervasive?
a.
Unmodified opinion.
b.
Disclaimer of opinion.
c.
Qualified opinion.
d.
Adverse opinion.
when the auditor find that the financial statement are not present fairly in all material respect . he or she will issue an adverse opinion
Select one:
True
False
2)
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.
Chapter 2 Solutions
Principles Of Auditing & Other Assurance Services
Ch. 2 - Prob. 1RQCh. 2 - Prob. 2RQCh. 2 - Prob. 3RQCh. 2 - Prob. 4RQCh. 2 - Prob. 5RQCh. 2 - Prob. 6RQCh. 2 - Prob. 7RQCh. 2 - Prob. 8RQCh. 2 - Prob. 9RQCh. 2 - Prob. 10RQ
Ch. 2 - Prob. 11RQCh. 2 - Prob. 12RQCh. 2 - Prob. 13RQCh. 2 - Prob. 14RQCh. 2 - Prob. 15RQCh. 2 - Prob. 16RQCh. 2 - Prob. 17RQCh. 2 - Prob. 18RQCh. 2 - Prob. 19RQCh. 2 - Prob. 20RQCh. 2 - Prob. 21RQCh. 2 - Prob. 22RQCh. 2 - Prob. 23RQCh. 2 - Prob. 24RQCh. 2 - Prob. 25QRACh. 2 - Prob. 26QRACh. 2 - Jane Lee, a director of a nonpublic corporation...Ch. 2 - Prob. 28QRACh. 2 - Prob. 29QRACh. 2 - Prob. 30AOQCh. 2 - Prob. 30BOQCh. 2 - Prob. 30COQCh. 2 - Prob. 30DOQCh. 2 - Prob. 30EOQCh. 2 - Prob. 30FOQCh. 2 - Prob. 30GOQCh. 2 - Prob. 30HOQCh. 2 - Prob. 30IOQCh. 2 - Prob. 30JOQCh. 2 - Prob. 30KOQCh. 2 - Prob. 30LOQCh. 2 - Prob. 31OQCh. 2 - Prob. 32OQCh. 2 - Prob. 33OQCh. 2 - Prob. 34OQCh. 2 - Prob. 35OQCh. 2 - Joe Rezzo, a college student majoring in...Ch. 2 - Prob. 37PCh. 2 - Hide-It (HI), a family-owned business based in...Ch. 2 - Prob. 39RDC
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Similar questions
- What 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_forwardWhich of the following case, an audit opinion with unqualified Report with Modified Wording will be issued? 1) Auditor doubt about the going concern assumption is valid 2) Auditor think the financial statements are materially misstated 3) Lack of consistent application of GAAP 4) The auditor is unable to obtain sufficient appropriate evidence a. 3 and 4 b. 2 and 4 c. 1 and 3 d. 1 andarrow_forwardWhat is the appropriate nature of opinion when the auditor having obtained sufficient appropriate audit evidence concludes that misstatements individually or in the aggregate, are material but not pervasive to the financial statements? a. Qualified opinion. b. Adverse opinion. c. Unmodified opinion. d. Disclaimer of opinion.arrow_forward
- The Auditor prepares a disclaimer of opinion: a. When he cannot find any misstatement in the report. b. When the financial statements are not following GAAP. c. When he finds some discrepancy in the treatment of some items. d. When he is not able to obtain sufficient appropriate audit evidences about an issue.arrow_forwardWhich of the following statements is false regardingsubstantiveanalytical procedures?a. Substantive analytical procedures are not required tobe performed on all audit engagements.b. If the results of substantive analytical proceduressuggest that an account balance is materially correct,the auditor can reduce the evidence needed fromtests of details.c. The auditor would perform substantive analyticalprocedures after tests of details.d. All of the above statements are true.arrow_forwardThe risk that the auditors will conclude, based on substantive procedures, that a material misstatement does not exist in an account balance when, in fact,arrow_forward
- 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.arrow_forwardWhich of the following statements about materiality is considered true? a. Materiality is judged by the auditor using his professional knowledge and experience since materiality of an item varies with circumstances. b. Materiality could never influence the economic decisions of users taken on the basis of the financial information. c. The auditor should consider materiality but not its relationship with audit risk when conducting an audit. d. The size and nature of the item will not determine its materiality.arrow_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
- Risk of incorrect acceptance is defined as _______. the risk that the auditor concludes that a material misstatement does not exist when it does exist the risk that the auditor concludes that a material misstatement does exist when it does exist the risk that an audit firm incorrectly issued an unmodified opinion the risk that an audit firm incorrectly accepts a client The objective of auditors is to obtain _______. sufficient appropriate audit evidence regarding the assessed risks of material misstatement sufficient appropriate audit evidence regarding the assessed risks of immaterial misstatement sufficient appropriate audit evidence from internal control only regarding the assessed risks of material misstatement insufficient appropriate audit evidence regarding the assessed risks of material misstatement When an adverse opinion is issued regarding internal control over financial reporting (ICFR), the…arrow_forwardWhen an auditor is faced with a material departure from GAAP that is pervasive, which of the following should the audit report contain? a. b. C. d. A disclaimer of opinion. A qualified opinion with an explanatory paragraph. An adverse opinion. An unqualified opinion.arrow_forwardWhich of the following statements concerning audit evidence is true?(1) To be appropriate, audit evidence should be either persuasive or relevant, butneed not be reliable.(2) The measure of the quantity and quality of audit evidence lies in the auditor’sjudgment.(3) The difficulty and expense of obtaining audit evidence concerning an accountbalance is a valid basis for omitting the test.(4) A client’s accounting records can be sufficient audit evidence to support thefinancial statements.arrow_forward
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