3. Consider the following statements: 1. The failure of a client to include a Statement of Cash Flows will result in the issuance of a qualified opinion by the auditor. II. If the CPA firm is not independent of the entity being audited, the CPA firm is required to issue a [one-paragraph] disclaimer of opinion. a. Tis true; Il is true b. Tis true; Il is false c. I is false; Il is true

3. Consider the following statements: 1. The failure of a client to include a Statement of Cash Flows will result in the issuance of a qualified opinion by the auditor. II. If the CPA firm is not independent of the entity being audited, the CPA firm is required to issue a [one-paragraph] disclaimer of opinion. a. Tis true; Il is true b. Tis true; Il is false c. I is false; Il is true

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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1.
With reasons examine the following statements are correct or incorrect: 1. Preparation of financial statements involves judgment by management 2. Evolving an audit programme applicable to all business in all circumstances is not practicable 3. Inquiry alone during audit will not provide needed sufficient audit evidence
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I WitT DivaRara Reddy Narasarju for Sem III 202 General / BAAC4203 Auditing and Control-2 FINAL EXAM 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: Qualified opinion Adverse opinion Disclaimer of opinion Unmodified opinion The type of fraud involved in charging the items of capital expenditure to revenue or by capitalizing revenue expenses Auditin EN s
Derermine whether statement 1 and statement 2 is true or false 1. S1- The main source of the auditor’s understanding about the status of cases and litigations faced by the entity is the entity’s legal counsel S2- Control activities may be applied on either manual system, computerized system of combination of both. a. False, False b. True, False c. False, True d. True, True 2. S1- Studying the relationship of financial information with another information, whether financial or non-financial, is an example of an analytical procedure. S2-To reduce audit risk to an acceptable low level, the auditor should determine overall responses assessed risks at the assertion level a. False, False b. True, False c. False, True d. True, True
Which of the following are the auditor's responsibilities when it comes to the financial stațements? 1. Giving an opinion as to their truth and fairness. 1, 3 and 4 only 1, 2 and 3 only 1 and 2 only 2 and 3 Only 2. Selecting and applying accounting policies. 3. Gathering evidence to support the opinion given. 4. Planning and conducting the audit.
A5
12. The practitioner's independence is not required in which of the following engagements? A. Audit of historical financial statements B. Review of historical financial statements C. Examination of prospective financial statements D. Installation of accounting information systems
If the auditor concludes that management’s use of the going concern basis of accounting is appropriate in the circumstances but a material uncertainty exists, the auditor shall: i) Determine whether financial statements disclose clearly that there is a material uncertainty ii) Determine whether the financial statements adequately disclose the principal conditions that may cast significant doubt on the entity’s ability to continue as a going concern. iii) Determine whether the financial statements adequately disclose management’s plans to deal with these events or conditions. A. i) and ii) B. i) and iii) C. Only i) D. i) , ii) and iii)
An item or information is considered MATERIAL in accounting if a. Its non-disclosure would influence the decisions of the users of financial statements b. Its non-disclosure would not influence the decisions of the users of financial statements c. Both of the options d. None of the options
If the financial statements are not achieve fair presentation, Auditor shall perform: 1. Perform additional Audit procedures. 2. Discuss the matter with the Management. 3. Determine how the matter is resolved. 4. determine whether it is necessary to modify the opinion on his report. 2, 3 and 4 1,2,3 and 4 1 and 4 only 1 & 2 only ge ncements Jump to... ammed AISaadi (Log out)
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