Auditing And Assurance Services
17th Edition
ISBN: 9780134897431
Author: ARENS, Alvin A.
Publisher: PEARSON
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Question
Chapter 3, Problem 22.3MCQ
To determine
Identify the correct answer for the given statement.
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Students have asked these similar questions
If a material exception relates to a departure from PFRSs, the auditor may issue either:
A. Unmodified and modified opinion
B. Adverse and qualified opinion
C. Adverse and disclaimer opinion
D. Qualified and disclaimer opinion
How is the auditors’ standard (unmodified) report modified for qualified or adverse opinionsissued as a result of departures from GAAP?
In an adverse opinion is expressed on the audited FS, the auditor shall express a disclaimer ofopinion on the summary FS because it is inappropriate to do so.
True or False?
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 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.arrow_forwardThe auditor shall express an adverse opinion when a matter is _____. a. Material b. Immaterial c. Both material and pervasive d. Pervasivearrow_forwardWhich of the following is not a condition before an auditor may add Emphasis of Matter paragraph in the auditor’s report?a. Matter is already fully disclosed in the financial statements.b. No material misstatement exists.c. Not result to modification of opinion.d. Be placed immediately after the opinion.arrow_forward
- The refusal of a client’s attorney to provide the information requested in an inquiry letter is considered A. Reasons for adverse opinion B. A limitation on the scope of the audit C. Grounds to withdraw from the engagement D. Equal to a significant deficiencyarrow_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_forwardWhich item regarding an Emphasis of Matter paragraph is true? a. The auditor will use the E of M to restrict distribution of the audit report. b. The auditor will use the E of M when the client has corrected an error in the previous financial statements. c. An E of M will be used when a material error exists in the current financial statements. d. The E of M paragraph is usually located immediately before the opinion paragraph. e. The E of M paragraph would be used to discuss a client's change in the method to estimate bad debts.arrow_forward
- When an auditor qualifies an opinion because of inadequate disclosure, the auditor should describe the nature of the omission in a separate “Basis for Qualified Opinion" section and modify the "Management's Responsibilities" section "Opinion" section Group of answer choices No No Yes No Yes Yes No Yesarrow_forwardMateriality arises when a misstatement in the financial statements could affect a decision of areasonable user of the statements.Explain the levels of materiality used for determining the type of opinion.arrow_forwardWhen 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_forward
- Choose the appropriate audit opinion from the following:... Choose the appropriate audit opinion from the following: • Adverse • Disclaimer • Qualified • Unmodified Auditors' judgment about the Pervasiveness of the Effects or Possible Effect on the Financial Statements Nature or Matter Giving Rise to the Modification Not Material Material but not pervasive Material and Pervasive Scope limitation Departure from GAAParrow_forwardAn opinion based in part on the report of another auditor requires a modified wording in the standard unqualified audit report. True O Falsearrow_forwardHow does a qualified opinion by an auditor differ from an unqualified opinion or an adverse opinion?arrow_forward
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