Loose-leaf For Auditing & Assurance Services: A Systematic Approach
11th Edition
ISBN: 9781260687637
Author: William F Messier Jr, Steven M Glover Associate Professor, Douglas F Prawitt Associate Professor
Publisher: McGraw-Hill Education
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Question
Chapter 1, Problem 1.21MCQ
To determine
Concept Introduction:Audit report includes the opinion of the auditor on the financial statements. Audit provides his opinion based on the audit evidences obtained during the
To choose: The statement that best describes the unqualified audit opinion.
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Students have asked these similar questions
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
when the auditor find that the financial statement are not present fairly in all material respect . he or she will issue an adverse opinion
Select one:
True
False
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
Chapter 1 Solutions
Loose-leaf For Auditing & Assurance Services: A Systematic Approach
Ch. 1 - Prob. 1.1RQCh. 1 - Prob. 1.2RQCh. 1 - Prob. 1.3RQCh. 1 - Prob. 1.4RQCh. 1 - Prob. 1.5RQCh. 1 - Prob. 1.6RQCh. 1 - Prob. 1.7RQCh. 1 - Prob. 1.8RQCh. 1 - Prob. 1.9RQCh. 1 - Prob. 1.10RQ
Ch. 1 - Prob. 1.11RQCh. 1 - Prob. 1.12RQCh. 1 - Prob. 1.13MCQCh. 1 - Prob. 1.14MCQCh. 1 - Prob. 1.15MCQCh. 1 - Prob. 1.16MCQCh. 1 - Prob. 1.17MCQCh. 1 - Prob. 1.18MCQCh. 1 - Prob. 1.19MCQCh. 1 - Prob. 1.20MCQCh. 1 - Prob. 1.21MCQCh. 1 - Prob. 1.22MCQCh. 1 - Prob. 1.23MCQCh. 1 - Prob. 1.24PCh. 1 - Prob. 1.25PCh. 1 - Prob. 1.26PCh. 1 - Prob. 1.28P
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Similar questions
- Which of the following statements are not true about auditors responsibilities? a) The financial statements are auditors responsibility b) The auditor's responsibility for the audited financial statements is confined to the expression of his or her opinion on them c) To identify and assess the risks of material mis-statement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain sufficient appropriate audit evidence to provide a basis for the auditor’s opinion d) To obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances and for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Only a) and c) All a) , b) , c) and d) Only a) and d) Only a)arrow_forwardAn adverse opinion is most likely to be included in an audit report when Multiple Choice A public company is involved. The financial statements depart from GAAP. A standard unmodified opinion is necessary. A client refuses to allow an auditor to perform a particular procedure.arrow_forwardHow does a qualified opinion by an auditor differ from an unqualified opinion or an adverse opinion?arrow_forward
- 2. A client has departed from GAAP for what you, the auditor, considers to be justifiable. The financial statements would have been misleading if the client had not departed from GAAP. Circumstance: Type of Opinion:arrow_forwardWhat type of opinion is issued by the auditor if he or she is unable to determine the overall fairness of the financial statements?arrow_forwardWhich of the following situations will not result in modification of the auditor's report because of a scope limitation? * O Inadequacy in the accounting records. O Restriction imposed by the client. Inability to obtain sufficient appropriate evidential matter. Reliance placed on the report of another auditor.arrow_forward
- 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.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_forwardWhich of the following statements concerning audit evidence is true?(1) To be appropriate, audit evidence should be either persuasive or relevant, butneed not be reliable.(2) The measure of the quantity and quality of audit evidence lies in the auditor’sjudgment.(3) The difficulty and expense of obtaining audit evidence concerning an accountbalance is a valid basis for omitting the test.(4) A client’s accounting records can be sufficient audit evidence to support thefinancial statements.arrow_forward
- Describe the audit opinion that should be given and explain why. a)When the client is not a going concern, in order to give a true and fair view, management may prepare financial statements on a basis other than going concern basis. The client which is no longer a going concern has still prepared the financial statements on the going concern basis. The client is unwilling to change their basis of preparation.arrow_forwardWhich of the following statements is incorrect regarding the reliability of audit evidence? a. While internal audit evidence is considered to be acceptable, the auditor usually prefers audit evidence form external sources. b. Oral representation by the client management is not a valid evidence. c. The effectiveness of accounting and internal control adds to the reliability of internal evidence. d. Audit evidence obtained directly by the auditor is more reliable than that one provided by the client.arrow_forwardWhen the auditor is unable to obtain sufficient and appropriate audit evidence concerning related parties and transactions with such related parties or conclude that the disclosure in the financial statement is not adequate, the auditor should. Select one: O 1. Express a disclaimer of opinion O 2. Express an adverse opinion 3. Withdraw from the audit engagement 4. Proceed without verifying the related party transactionarrow_forward
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