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 22.1MCQ
To determine
Identify the correct answer for the given statement.
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Students have asked these 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.
The standard uniquified audit report
Select one:
a. is sometimes called a disclaimer report
b. can be issued only with an explanatory paragraph
c.
can be issued if only a balance sheet and income statement are included in the financial statements.
d. is sometimes called a clean opinion
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.
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
- 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 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.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_forward
- Departures 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_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_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
- When asked to perform an audit to express an opinion on one or more specified elements,accounts, or items of a financial statement, the auditor(1) may not describe auditing procedures applied.(2) should advise the client that the opinion can be issued only if the financial statements have been audited and found to be fairly presented.(3) may assume that the first standard of reporting with respect to GAAP does not apply.(4) should comply with the request only if they constitute a major portion of the financialstatements on which an auditor has disclaimed an opinion based on an audit.arrow_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_forwardAUDITING Answer the following questions and explain the correct answers per item. Also explain why the other choices are incorrect 1. An accountant agrees to the client's request to change an engagement from a review to a compilation of financial statements. The compilation report should include: A. No reference to the original engagement. B. Reference to a departure from PSAs. C. Scope limitations that may have resulted in the change of engagement. D. Information about review procedures already performed. 2. The Philippine Framework for Assurance Engagements identifies two types of assurance engagements a practitioner is permitted to perform: a reasonable assurance engagement and a limited assurance engagement. Which of the following is the objective of a limited assurance engagement? A. A reduction in assurance engagement risk to a very low level in the circumstances of the engagement as a basis for a disclaimer of the practitioner's conclusion. B. A reduction in assurance engagement…arrow_forward
- Other matters to which the auditor may wish to refer in an Other Matter(s) paragraph but which are not required to be presented or disclosed in the financial statements by the applicable financial reporting framework include, for example, the following: Group of answer choices all three other choices Information in a document containing audited financial statements that is materiallyinconsistent with those financial statements. In rare circumstances, other matters that the auditor considers necessary tocommunicate to the user, for example, where the auditor judges it necessary to explain whythe auditor is unable to resign from the engagement even though the possible effect of an inability to obtain sufficient appropriate audit evidence due to a scope limitation imposed by management is pervasive A predecessor auditor’s report on the corresponding figures in the incoming auditor’sreport for the current period where the incoming auditor is permitted to make such areferencearrow_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_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_forward
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