Auditing And Assurance Services
17th Edition
ISBN: 9780134897431
Author: ARENS, Alvin A.
Publisher: PEARSON
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Question
Chapter 3, Problem 13RQ
To determine
Explain the manner in which the eight parts of a standard unmodified opinion audit report for non-public companies differ from qualified opinion report.
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Students have asked these similar questions
In audit reporting, what does an unqualified opinion mean?
25. Which of the following would not be included in an accountant's review report on the financial statements of a nonpublic entity?
Group of answer choices
A statement that the review was made in accordance with generally accepted auditing standards.
A statement that all information included in the financial statements is the representation of management.
A statement describing the principal procedures performed.
A statement describing the auditor's conclusions based on the results of the review.
What 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.
disclaimer
Chapter 3 Solutions
Auditing And Assurance Services
Ch. 3 - Prob. 1RQCh. 3 - Prob. 2RQCh. 3 - Prob. 3RQCh. 3 - Prob. 4RQCh. 3 - Prob. 5RQCh. 3 - Prob. 6RQCh. 3 - Prob. 7RQCh. 3 - Prob. 8RQCh. 3 - Prob. 9RQCh. 3 - Prob. 10RQ
Ch. 3 - Prob. 11RQCh. 3 - Prob. 12RQCh. 3 - Prob. 13RQCh. 3 - Prob. 14RQCh. 3 - Distinguish between a report qualified due to a...Ch. 3 - Prob. 16RQCh. 3 - Prob. 17RQCh. 3 - Prob. 18RQCh. 3 - Prob. 19RQCh. 3 - Prob. 20.1MCQCh. 3 - Prob. 20.2MCQCh. 3 - Prob. 20.3MCQCh. 3 - Prob. 21.1MCQCh. 3 - Prob. 21.2MCQCh. 3 - Prob. 21.3MCQCh. 3 - Prob. 22.1MCQCh. 3 - Prob. 22.2MCQCh. 3 - Prob. 22.3MCQCh. 3 - Prob. 23DQPCh. 3 - Prob. 24DQPCh. 3 - Prob. 25DQPCh. 3 - Prob. 26DQPCh. 3 - Prob. 28DQPCh. 3 - Prob. 29DQP
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Similar questions
- Which paragraphs, if any, of the standard unqualified opinion, are auditing standards (i.e., GAAS) and GAAP standards referenced? Auditing Standards GAAP Standards A. Not Řeferenced Opinion B. Basis for Opinion Opinion C. Opinion Basis for Opinion D. Opinion Not Referencedarrow_forwardRegarding Target’s audit report:a. Who is Target’s auditor?b. Did Target receive a “clean” (unmodified) audit opinion?arrow_forwardWhich of the following is not required by generally accepted auditing standards?a. Written representations.b. Attorney letter.c. Management letter.d. Engagement letterarrow_forward
- What is the purpose of an external audit by an independent CPA firm? How does an auditor go about conducting an audit? How does a qualified opinion by an auditor differ from an unqualified opinion or an adverse opinion? Paragraph under 100 words pleasearrow_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_forwardWhat types of companies are required to obtain an independent audit and what is the purpose of the Audit Report?arrow_forward
- Describe the parts of thestandard unqualified audit reportfor non-public entities underAICPA auditing standards.arrow_forwardAudit working paper classification varies among auditing firms. TRUE OR FALSE? WHY?arrow_forwardQuestion 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_forward
- Which of the following statements is not true with respect to the audit examinations andreports for public and nonpublic entities?a. Audit examinations for nonpublic entities are based on user demand but based on legislative requirements for public entities.b. The reports for both public and nonpublic entities express an opinion on the entity’sfinancial statements.c. Auditors are required to express an opinion on internal control in the audit of nonpublicentities but not in the audit of public entities.d. Management is responsible for the fairness of the financial statements for both publicentities and nonpublic entities.arrow_forwardQuestion 2 If the auditors encounter a significant scope limitation in evaluating a public company's internal control over financial reporting, which of the following types of opinions on the effectiveness of the comapny's internal control would be appropriate?: Unqualified Qualified disclaimer Adversearrow_forwardWhen an auditor is faced with a material departure from GAAP that is pervasive, which of the following should the audit report contain? a. b. C. d. A disclaimer of opinion. A qualified opinion with an explanatory paragraph. An adverse opinion. An unqualified opinion.arrow_forward
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