EBK PRINCIPLES OF AUDITING & OTHER ASSU
21st Edition
ISBN: 9781260299434
Author: WHITTINGTON
Publisher: YUZU
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Question
Chapter 17, Problem 25AOQ
To determine
Identify the consideration of the auditor in case of a material departure from the generally accepted accounting principles.
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Students have asked these similar questions
Which 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.
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:
When financial statements are affected by a material departure from generally accepted accounting principles, the auditors should:
Withdraw from the engagement.
Issue an unmodified opinion with a basis for modification paragraph.
Issue an "except for" qualification or a disclaimer of opinion.
Issue an "except for" qualification or an adverse opinion.
Chapter 17 Solutions
EBK PRINCIPLES OF AUDITING & OTHER ASSU
Ch. 17 - Prob. 1RQCh. 17 - What is the function of notes to financial...Ch. 17 - Prob. 3RQCh. 17 - Prob. 4RQCh. 17 - Prob. 5RQCh. 17 - Prob. 6RQCh. 17 - Prob. 7RQCh. 17 - Prob. 8RQCh. 17 - Prob. 9RQCh. 17 - Prob. 10RQ
Ch. 17 - Prob. 11RQCh. 17 - Prob. 12RQCh. 17 - Prob. 13RQCh. 17 - Prob. 14RQCh. 17 - Prob. 15RQCh. 17 - Prob. 16RQCh. 17 - Prob. 17RQCh. 17 - Prob. 18RQCh. 17 - Prob. 19RQCh. 17 - Prob. 20RQCh. 17 - Prob. 21QRACh. 17 - Prob. 22QRACh. 17 - Prob. 23QRACh. 17 - Prob. 24QRACh. 17 - Prob. 25AOQCh. 17 - Prob. 25BOQCh. 17 - Prob. 25COQCh. 17 - Prob. 25DOQCh. 17 - Prob. 25EOQCh. 17 - Prob. 25FOQCh. 17 - Prob. 25GOQCh. 17 - Prob. 25HOQCh. 17 - Prob. 25IOQCh. 17 - Prob. 25JOQCh. 17 - Prob. 25KOQCh. 17 - Prob. 25LOQCh. 17 - Prob. 26OQCh. 17 - Prob. 27OQCh. 17 - Prob. 28OQCh. 17 - Prob. 29OQCh. 17 - Prob. 30OQCh. 17 - Prob. 31OQCh. 17 - Prob. 32OQCh. 17 - Prob. 33PCh. 17 - Prob. 34PCh. 17 - Sturdy Corporation (a nonpublic company) owns and...Ch. 17 - Prob. 36PCh. 17 - Prob. 37PCh. 17 - Prob. 38ITCCh. 17 - Prob. 39ITCCh. 17 - Prob. 40RDC
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Similar questions
- 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.arrow_forward2. Consider the following statements: I. Inconsistent application of accounting principles (i.e. a change in accounting principle, which the auditor agrees is acceptable) would result in a unqualified audit opinion. II. For a change in accounting principles that management does NOT justify to the auditor, the auditor will likely issue a Disclaimer of an audit opinion. a. Tis true; Il is true b. Iis true; Il is false c. I is false; Il is true d. I is false; II is falsearrow_forwardWhat will the auditor do in respect of misstatement which in his opinion are immaterial? a. Give unmodified/unqualified opinion. b. Can’t form an opinion c. Give modified/qualified opinion d. Give an adverse opinionarrow_forward
- From the options given below which of the following is not the reason of inherent limitation of audit? a. Limitation in accounting system O b. Use of human judgment O c. Poor planning O d. Human errorsarrow_forwardWhen there is a lack of consistent application of GAAP due to a new accounting pronouncement, no explanatory paragraph is required Select one: True Falsearrow_forwardwhen 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 Falsearrow_forward
- Which 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_forwardIf 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 opinionarrow_forwardThe attorney's refusal to reply to the audit inquiry is a scope limitation that may affect the audit report. True Falsearrow_forward
- would you say that material mistakes found in a financial statement could lead to the auditors being held liable?arrow_forwardThe auditor shall never include in the same auditor’s report an unmodified opinion on a singleFS that forms part of those FS or ona specific element of those FS. True or False?arrow_forwardWhen 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.arrow_forward
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