AUDITING & ASSURANCE SERVICES CONNECT AC
10th Edition
ISBN: 9781259292057
Author: MESSIER
Publisher: MCG
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Question
Chapter 18, Problem 18.15MCQ
To determine
Concept Introduction:
Audit report includes the opinion of the auditor on the financial statements. Auditers providetheir opinions based on the audit evidences obtained during the
To choose: The case when auditor would issue a qualified or disclaimer of opinion.
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Students have asked these similar questions
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.
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.
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.
Chapter 18 Solutions
AUDITING & ASSURANCE SERVICES CONNECT AC
Ch. 18 - Prob. 18.1RQCh. 18 - Prob. 18.2RQCh. 18 - Prob. 18.3RQCh. 18 - Prob. 18.4RQCh. 18 - Prob. 18.5RQCh. 18 - Prob. 18.6RQCh. 18 - Prob. 18.7RQCh. 18 - Prob. 18.8RQCh. 18 - Prob. 18.9RQCh. 18 - Prob. 18.10MCQ
Ch. 18 - Prob. 18.11MCQCh. 18 - Prob. 18.12MCQCh. 18 - Prob. 18.13MCQCh. 18 - Prob. 18.14MCQCh. 18 - Prob. 18.15MCQCh. 18 - Prob. 18.16MCQCh. 18 - Prob. 18.17MCQCh. 18 - Prob. 18.18MCQCh. 18 - Prob. 18.19MCQCh. 18 - Prob. 18.20MCQCh. 18 - Prob. 18.21MCQCh. 18 - Prob. 18.22PCh. 18 - Prob. 18.23PCh. 18 - Prob. 18.24PCh. 18 - Prob. 18.25PCh. 18 - Prob. 18.26PCh. 18 - Prob. 18.27PCh. 18 - Prob. 18.28P
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Similar questions
- What type of opinion is issued by the auditor on the financial statements when there is some limitation on the scope of the audit or when one or more items in the financial statements are not presented in accordance with applicable accounting principles?arrow_forwardWhen a client’s financial statements contain a material departure from an FASB Statementon Accounting Standards and the public accounting firm believes the departure is necessaryto ensure that the statements are not misleading,a. The public accounting firm must qualify the auditors’ report for a departure from GAAP.b. The public accounting firm can explain why the departure is necessary and then give anunmodified opinion paragraph in the auditors’ report.c. The public accounting firm must give an adverse auditors’ report.d. The public accounting firm can give the standard unmodified auditors’ report with anunmodified opinion paragrapharrow_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_forward
- would you say that material mistakes found in a financial statement could lead to the auditors being held liable?arrow_forwardWhat type of opinion is issued by the auditorr if he or she is unable to determine the overall fairness of the financial statements?arrow_forwardUnder 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.arrow_forward
- Question 1 When an auditor issues an adverse opinion, which of the following should be included in the opinion paragraph? The reasons the financial statements are misleading A reference to a separate paragraph that describes the reason for the adverse opinion including a quantification of the impact on the financial statements. A statement that indicates the financial statements are fairly presented except for a reason that is described in the separate paragraph. The financial statement affects of the departure from GAAP.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_forwardplease answer botharrow_forward
- 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 opinionarrow_forward2. 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_forwardNoncompliance includes transactions entered by the entity’s employees and management in their personal capacity. The preliminary judgment or estimate about materiality represents the maximum amount by which a set of financial statements could be misstated and still not cause the auditor to believe that the decisions of reasonable users would be affected. Group of answer choices False, True True, False True, True False, Falsearrow_forward
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