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 21, Problem 21.21MCQ
To determine
Concept Introduction:
The financial statements to be reviewed by the accountant should be accompanied by a report stating various elements like title, addressee, introductory paragraph, management responsibility, result of engagement, and signature of accountant and date of accountant’s report.
To choose: The correct option for financial statement \ reviewed by an accountant.
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Students have asked these similar questions
Accountants are permitted to express “negative assurance” in which of the following reports?a. Standard unmodified audit report on financial statements.b. Compilation report on unaudited financial statements.c. Review report on unaudited financial statements.d. Adverse opinion report on financial statements.
Before issuing a report on the compilation of
financial statements of a non-public entity,
the accountant should:
a. Apply analytical procedures to selected
financial data to discover any material
misstatements.
b. Corroborate at least a sample of the
assertions management has embodied in the
financial
statements.
c. Inquire of the client's personnel whether
the financial statements omit substantially all
disclosures.
d. Read the financial statements to consider
whether the financial statements are free
from obvious material errors.
The Accountant Should?
Chapter 21 Solutions
Loose-leaf For Auditing & Assurance Services: A Systematic Approach
Ch. 21 - Prob. 21.1RQCh. 21 - Prob. 21.2RQCh. 21 - Prob. 21.3RQCh. 21 - Prob. 21.4RQCh. 21 - Prob. 21.5RQCh. 21 - Prob. 21.6RQCh. 21 - Prob. 21.7RQCh. 21 - Prob. 21.8RQCh. 21 - Prob. 21.9RQCh. 21 - Prob. 21.10RQ
Ch. 21 - Prob. 21.11RQCh. 21 - Prob. 21.12RQCh. 21 - Prob. 21.13RQCh. 21 - Prob. 21.14RQCh. 21 - Prob. 21.15MCQCh. 21 - Prob. 21.16MCQCh. 21 - Prob. 21.17MCQCh. 21 - Prob. 21.18MCQCh. 21 - Prob. 21.19MCQCh. 21 - Prob. 21.20MCQCh. 21 - Prob. 21.21MCQCh. 21 - Prob. 21.22MCQCh. 21 - Prob. 21.23MCQCh. 21 - Prob. 21.24MCQCh. 21 - Prob. 21.25MCQCh. 21 - Prob. 21.26MCQCh. 21 - Prob. 21.27MCQCh. 21 - Prob. 21.28MCQCh. 21 - Prob. 21.29MCQCh. 21 - Prob. 21.30PCh. 21 - Prob. 21.31PCh. 21 - Prob. 21.32PCh. 21 - Prob. 21.33PCh. 21 - Prob. 21.34PCh. 21 - Prob. 21.35P
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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.arrow_forwardThe standard compilation report includes which statement or phrase?(1) A compilation is substantially less in scope than a review or an audit.(2) The accountant does not express an opinion but expresses only limited assurance on the compiled financial statements.(3) The objective of a compilation is to assist management in presenting financialinformation in the form of financial statements.(4) The accountant has compiled the financial statements in accordance withstandards established by the Auditing Standards Board.arrow_forwardExplain Answerarrow_forward
- Which of the following statements, relating to the auditor's responsibilities regarding subsequent events, if any, is/are correct? (1) Auditors do not have a responsibility to perform procedures to identify subsequent events after the date of the auditor's report(2) Where a material adjusting subsequent event is identified after the financial statements are issued, but prior to approval by the shareholders, the auditor should includeja qualified opinion in their audit report if management refuses to adjust the financial statements for the event a. 1 only b. Neither 1 nor 2 c. 2 only d. Both 1 and 2arrow_forwarddiscuss the type of opinion is issued by the auditorr if he or she is unable to determine the overall fairness of the financial statements?arrow_forwardNegative Assurance in Review Reports. One portion of the report on a review services engagement is the following: “Based on my review, I am not aware of any material modifications that should be made to the accompanying financial statements in order for them to be in conformitywith generally accepted accounting principles [or another framework for financial reporting].”Required:a. Is this paragraph a “negative assurance” given by the accountants?b. Why is negative assurance generally prohibited in audit reports?c. What justification is there for permitting negative assurance in a review services report on unaudited financial statements and on interim financial information?arrow_forward
- If the auditor expresses an adverse or disclaimer of opinion on the complete set of financialstatements, she or he is not permitted to:a. Express an unmodified opinion on a single financial statement.b. Express an unmodified opinion on an element of the financial statements.c. Express a similar opinion on a single financial statement.d. Perform any of the abovearrow_forward??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_forward
- Which of the following statements about materiality is incorrect? the preliminary assessment of materiality guides audit planning and testing materiality is used to guide the validity of information contained in the financial report materiality is a key auditing concept that is assessed during the planning stage of every audit information is considered material if it has no impact on the decision-making process of financial report usersarrow_forwardWhen accountants are not independent, which of the following reports can they nevertheless issue?a. Compilation report.b. Standard unmodified audit report.c. Examination report on a forecast.d. Examination of internal control over financial reporting.arrow_forwardAuditors are not responsible for accounting estimates with respect toa. Making the estimates.b. Determining the reasonableness of estimates.c. Determining that estimates are presented in conformity with GAAP.d. Determining that estimates are adequately disclosed in the financial statements.arrow_forward
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