Under which of the following circumstances would a disclaimer of opinion not beappropriate?(1) The auditor is unable to determine the amounts associated with an employeefraud scheme.(2) Management does not provide reasonable justification for a change in accountingprinciples.(3) The client refuses the auditor permission to confirm certain accounts receivableor apply alternative procedures to verify their balances.(4) The chief executive officer is unwilling to sign the management representationletter.

Q: The auditor prepares the financial statements for DecoPaints SAOG while also serving as the auditor…

A: Audit is the review and examination of books of account and financial information of the business in…

Q: Which of the following best describes the effect of a contingent fee arrangement on the auditor's…

A: The contingent fees rule has been defined in Section 1.510 of the AICPA’s revised Code of…

Q: Which of the following are financial statement frauds? Select which three options are correct. A.…

A: Financial statements frauds involves intentional misapplication of accounting principles related…

Q: Which of the following statements would most likely appear in an auditor's engagement letter? a.

A: Audit report represents the report prepared by an auditor that shows the opinion of the auditor on…

Q: When a client’s financial statements contain a material departure from an FASB Statementon…

A: Financial statements: Financial statements are condensed summary of transactions communicated in the…

Q: f in the auditor’s judgment, management’s use of the going concern basis of accounting in the…

A: Under going concern concept, entity's financial statements are prepared on the assumption that the…

Q: materiality

A: The first statement is true because the transactions of personal capacity affect the business entity…

Q: The auditor’s primary consideration is whether, and how, internal control prevents, or detects and…

A: Auditors are appointed to audit the financial statements of the company to check whether the…

Q: With respect to fraudulent financial reporting, which one of the following statements is not…

A: Auditor can obtain reasonable assurance only, not an absolute assurance.

Q: The auditors who find that the client has committed an illegal act would be most likely to withdraw…

A: Auditors are the professionals who are involved in the scrutiny of the financial reports and…

Q: 8. Explain about the type of report the Auditor would issue END of the EXAM a. if he disagrees with…

A: Auditor modifies his opinion in the auditors report when: 1) The auditor concludes that, based on…

Q: For Questions 21 through 30, assume that you are reporting on an audit of a client’s financial…

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: Which report would not be appropriate for a public accounting firm to provide on financial reporting…

A:

Q: Some auditors claim that increased exposure under creates a litigation environment that is unfairly…

A:

Q: Each of the following statements is a communication from management. Indicate whether the inclusion…

A: For given cases, we have to indicate whether the written representations is appropriate or not.

Q: When financial statements are affected by a material departure from generally accepted accounting…

A: Generally Accepted Accounting principles: GAAP is  issued by the Financial Accounting Standards…

Q: The following are examples of circumstances that may indicate the possibility that the financial…

A: Audit is the process of checking and verifying financial statements of the business so that it can…

Q: Which of the following statements is not true with respect to written representations?a. The failure…

A: Introduction: Written representations are acquired by the auditors from the management in the form…

Q: Negative Assurance in Review Reports. One portion of the report on a review services engagement is…

A:

Q: 2. The auditors who find that the client has committed an illegal act would be most likely to…

A: When auditors discover that a client has engaged in illegal activity, they are more likely to leave…

Q: Smith CPAs have requested that an audit client add a note disclosure to the financial statements…

A: Smith CPAs have requested that an audit client add a note disclosure to the financial statement…

Q: Which of the following is NOT among the conditions that give rise to a demand by external users for…

A: The conditions that give rise to a demand by external users for independent audits of financial…