Answered: The AICPA sets auditing standards for…

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Accounting

The AICPA sets auditing standards for auditors of non-public companies in the U.S. True False

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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Question 7

The AICPA sets auditing standards for auditors of non-public companies in the U.S.

True

False

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Question 25 When performing an audit of a public company, PCAOB standards do not require the auditor to perform test on internal controls if going straight to substantive audit procedures are more cost effective and provide will sufficient evidence to express an opinion on the financial statements taken as a whole. True False
Question 15 As Review of Financial Statements under SSARS is not considered an audit engagement the accountant need not be independent. Answers: True False
The standard unqualified opinion based on the audit of a public company's financial statements includes a. A discussion of Key Audit Matters if KAMs are discovered. b. A reference to Key Audit Matters if no KAMs are discovered. c. A statement that the CPA firm is registered with the AICPA. d. An indication of how long the firm has served as the company's auditors. e. A Basis for Opinion section preceding the Opinion of Financial Statements section.
3. Does a qualified opinion on management’s assessment of internal controls over the financial reporting system necessitate a qualified opinion on the financial statements? Please explain within 150 words. (To answer this question, please make sure you understand the terms “unqualified opinion” and “qualified opinion” in auditing.
4 In order for the auditor to perform the audit work, the accountant does not have to first prepare the financial statements needed. Question 4 options: a) True b) False
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Question 22 Which statement is correct concerning a disclaimer of opinion and an adverse opinion? Group of answer choices A disclaimer of opinion indicates that the auditor has not been able to gather enough evidence to render an opinion on the financial statements, while an adverse opinion indicates that the financial statements are materially misstated. A disclaimer of opinion indicates that the financial statements are materially misstated, while an adverse opinion indicates that the auditor has not been able to gather enough evidence to render an opinion on the financial statements The opinions are generally equivalent, except an adverse opinion includes a going concern paragraph Adverse opinions indicate that the financial statements are materially misstated, while a disclaimer indicates that the financial statements are "so wrong" that no opinion can be given