AUDITING & ASSURANCE SERVICES CONNECT AC
10th Edition
ISBN: 9781259292057
Author: MESSIER
Publisher: MCG
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Chapter 17, Problem 17.12RQ
To determine
Introduction: The restatement of financial statements means revising the financial statements if any significant error has been reported in the statements that have already been prepared. The entity needs to cooperate with the auditor if the auditor asks for restatement of financial statements or asks for making necessary disclosures.
To explain: The events that would require restatement of the issued financial statements and the procedure an auditor should follow if the entity refuses to cooperate and make the necessary disclosures.
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Chapter 17 Solutions
AUDITING & ASSURANCE SERVICES CONNECT AC
Ch. 17 - Prob. 17.1RQCh. 17 - Prob. 17.2RQCh. 17 - Prob. 17.3RQCh. 17 - Prob. 17.4RQCh. 17 - Prob. 17.5RQCh. 17 - Prob. 17.6RQCh. 17 - Prob. 17.7RQCh. 17 - Prob. 17.8RQCh. 17 - Prob. 17.9RQCh. 17 - Prob. 17.10RQ
Ch. 17 - Prob. 17.11RQCh. 17 - Prob. 17.12RQCh. 17 - Prob. 17.13MCQCh. 17 - Prob. 17.14MCQCh. 17 - Prob. 17.15MCQCh. 17 - Prob. 17.16MCQCh. 17 - Prob. 17.17MCQCh. 17 - Prob. 17.18MCQCh. 17 - Prob. 17.19MCQCh. 17 - Prob. 17.20MCQCh. 17 - Prob. 17.21MCQCh. 17 - Prob. 17.22PCh. 17 - Prob. 17.23PCh. 17 - Prob. 17.24PCh. 17 - Prob. 17.25PCh. 17 - Prob. 17.26PCh. 17 - Prob. 17.27PCh. 17 - Prob. 17.28P
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Similar questions
- What are the two requirements for the auditor to offer an unqualified opinion on internal financial reporting controls? What causes the auditor to offer a qualified or disclaimer opinion on internal control over financial reporting?arrow_forwardWhich of the following opinions would be issued if auditors believed that the entity’s financial statements were not presented in conformity with GAAP?a. Adverse opinion.b. Disclaimer of opinion.c. Qualified opinion.d. Unmodified opinionarrow_forwardWhat two conditions must be present for the auditor to issue anunqualified opinion on internal control over financial reporting? What type of conditionwill cause the auditor to issue a qualified or disclaimer of opinion on internal controlover financial reporting?arrow_forward
- What type of opinion is issued by the auditorr if he or she is unable to determine the overall fairness of the financial statements?arrow_forwardWhat factors should the auditor take into consideration before concluding that a financial statement do not show a True and Fair View?arrow_forwardIf 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 informationarrow_forward
- Which of the following best describes the reason why an independent auditorreports on financial statements?(1) A misappropriation of assets may exist, and it is more likely to be detected byindependent auditors.(2) Different interests may exist between the company preparing the statementsand the persons using the statements.(3) A misstatement of account balances may exist and is generally corrected as theresult of the independent auditor’s work.(4) Poorly designed internal controls may be in existencearrow_forwardWhat steps should auditors take if during a compilation engagement they become aware that the financial statements are misleading?arrow_forwardWhat possible actions would an auditor might take if a client’s financial statements depart from GAAP. Would the demand for assurance services increase or decrease in the future?arrow_forward
- Which of the following audit procedures is least appropriate for addressing the assertion of valuation of liabilities? a. Confirm with creditors b. Test for unrecorded liabilities. c. Perform analytical procedures. d. Verify accounts payable trial balancearrow_forwardWhich 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_forwardExplain the auditor’s responsibility to consider compliance with laws and regulations. How does this responsibility differ for laws and regulations that have a direct effect on the financial statements compared to other laws and regulations that do not have a direct effect?arrow_forward
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