The auditor shall express what kind of opinion when the auditor, having obtained sufficient appropriate audit evidence, concludes that misstatements, individually or in the aggregate, are both material and pervasive to the financial statements. A. Adverse B. Qualified C. Disclaimer D. None of the above

The auditor shall express what kind of opinion when the auditor, having obtained sufficient appropriate audit evidence, concludes that misstatements, individually or in the aggregate, are both material and pervasive to the financial statements. A. Adverse B. Qualified C. Disclaimer D. None of the above

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter15: Audit Reports For Financial Statement Audits

Section: Chapter Questions

Problem 1CYBK

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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 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 opinion
What 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.
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: Disclaimer of opinionUnmodified opinionAdverse opinionQualified opinion
Which 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.
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.
The auditor will issue un-qualified audit report with explanatory paragraph when: Select one: a. The financial statements are present fairly in all material respect b. The scope of the audit has been restricted c. Substantial doubt about going concern d. The auditor is not independent
If in the auditor’s judgment, management’s use of the going concern basis of accounting in the preparation of the financial statements is inappropriate: A. The auditor will give a disclaimed of opinion. B. The auditor shall express an adverse opinion. C. The auditor shall express an unmodified opinion with a separate section. D. The auditor shall express a qualified opinion.
In which of the following situations would an auditor ordinarily issue an unqualified or unmodified financial statement audit opinion with no explanatory (or emphasis-of-matter or other-matter) paragraph? Multiple Choice O O The auditor decides not to refer to the report of another auditor as a basis, in part, for the auditor's opinion.. The auditor wishes to emphasize that the entity had significant related- party transactions. The auditor has substantial doubt about the entity's ability to continue as a going concern, but the circumstances are fully disclosed in the financial statements. The entity issues financial statements that present financial position and results of operations but omits the statement of cash flows..
Which of the following factors are to be considered by the auditor to express a modified audit opinion? 1. Whether the financial statements are materially misstated. 2. Inability to obtain sufficient appropriate audit evidence. 3. Auditor's Judgement about the possible effects of the matter. 1 only 3 only 1,2& 3 1&2 only. As per ISA 570, Who of the following is responsible for assessing the entity going concern assumption? A Auciting ah EN
If 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 information
When the financial statements are fairly stated but the auditor concludes there is substantial doubt whether the client can continue in existence, the auditor should issue a(n)(1) adverse opinion.(2) qualified opinion only.(3) unqualified opinion.(4) unqualified opinion with explanatory paragraph.