Auditing and Assurance Services (16th Edition)
16th Edition
ISBN: 9780134065823
Author: Alvin A. Arens, Randal J. Elder, Mark S. Beasley, Chris E. Hogan
Publisher: PEARSON
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Question
Chapter 3, Problem 12RQ
To determine
Explain the manner in which the eight parts of a standard unmodified opinion audit report for non-public companies differ from qualified opinion report.
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In audit reporting, what does an unqualified opinion mean?
25. Which of the following would not be included in an accountant's review report on the financial statements of a nonpublic entity?
Group of answer choices
A statement that the review was made in accordance with generally accepted auditing standards.
A statement that all information included in the financial statements is the representation of management.
A statement describing the principal procedures performed.
A statement describing the auditor's conclusions based on the results of the review.
What is an unqualified opinion in Audit reporting?
Chapter 3 Solutions
Auditing and Assurance Services (16th Edition)
Ch. 3 - Prob. 1RQCh. 3 - Prob. 2RQCh. 3 - Prob. 3RQCh. 3 - Prob. 4RQCh. 3 - Prob. 5RQCh. 3 - Prob. 6RQCh. 3 - Prob. 7RQCh. 3 - Prob. 8RQCh. 3 - Prob. 9RQCh. 3 - Prob. 10RQ
Ch. 3 - Prob. 11RQCh. 3 - Prob. 12RQCh. 3 - Prob. 13RQCh. 3 - Distinguish between a report qualified due to a...Ch. 3 - Prob. 15RQCh. 3 - Prob. 16RQCh. 3 - Prob. 17RQCh. 3 - Prob. 18RQCh. 3 - Prob. 19RQCh. 3 - Prob. 20.1MCQCh. 3 - Prob. 20.2MCQCh. 3 - Prob. 20.3MCQCh. 3 - Prob. 21.1MCQCh. 3 - Prob. 21.2MCQCh. 3 - Prob. 21.3MCQCh. 3 - Prob. 22.1MCQCh. 3 - Prob. 22.2MCQCh. 3 - Prob. 22.3MCQCh. 3 - Prob. 23DQPCh. 3 - Prob. 24DQPCh. 3 - Prob. 25DQPCh. 3 - Prob. 26DQPCh. 3 - Prob. 27DQPCh. 3 - Prob. 28DQPCh. 3 - Prob. 29DQP
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Similar questions
- How is the auditors’ standard (unmodified) report modified for qualified or adverse opinionsissued as a result of departures from GAAP?arrow_forwardWhich of the following opinions would be issued if auditors believed that the entity’s financial statements were not presented in conformity with GAAP?a. Adverse opinion.b. Disclaimer of opinion.c. Qualified opinion.d. Unmodified opinionarrow_forwardWhat exactly is an unqualified opinion in the context of audit reporting?arrow_forward
- 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_forward(B) Unusual Items: Please give two examples of “unusual items” and explain if these items affect the current period income statement or a prior period income statement. Why should these particular items be reported separately on the income statement? Please be specific. (C) Audit Reports: (1) What types of companies are required to obtain an independent audit and what is the purpose of the Audit Report? (2) An “unqualified opinion” doesn’t sound very favorable; in fact, it sounds like the person giving the opinion does not have the proper credentials. Please clarify this issue. Wouldn’t a company rather receive a “qualified opinion?” Also, does a clean opinion mean the financial statements are 100% error-free? Please explain.arrow_forwardWhich paragraphs, if any, of the standard unqualified opinion, are auditing standards (i.e., GAAS) and GAAP standards referenced? Auditing Standards GAAP Standards A. Not Řeferenced Opinion B. Basis for Opinion Opinion C. Opinion Basis for Opinion D. Opinion Not Referencedarrow_forward
- Regarding Target’s audit report:a. Who is Target’s auditor?b. Did Target receive a “clean” (unmodified) audit opinion?arrow_forwardHow is the auditors’ responsibility for expressing the opinion on financial statements disclosed in the standard (unmodified) report for a nonpublic company?a. Stated explicitly in the Auditor’s Responsibility section.b. Unstated but understood in the Auditor’s Responsibility section.c. Stated explicitly in the opinion paragraph.d. Stated explicitly in the introductory paragraph.arrow_forwardWhat 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_forward
- Which of the following is not required by generally accepted auditing standards?a. Written representations.b. Attorney letter.c. Management letter.d. Engagement letterarrow_forward15. Which of the following engagements is not covered by the pronouncements of AASC (Auditing and Assurance Standards Council)? A. Audit and review engagements B. Agreed-upon procedures engagements C. Compilation engagements D. Tax consulting engagementsarrow_forwardIf it is necessary to amend other information in a document containing audited financial statements and the entity refuses to make the amendment, the auditor would consider issuing * A. Qualified or disclaimer of opinion B. Qualified or adverse opinion C. Unmodified opinion with no additional statement pertaining to the other information opinion D. Unmodified opinion with a statement pertaining to the other informationarrow_forward
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