AUDIT REPORT QUIZ - Read-only eee Read Only - You can't save changes to t... v ‘AccTG 2040 :L_ When an independent auattor expresses an unqualified opinion he asserts that: (1) He performed the auattin accordance with generally accented auditing standards, (2) The company isa profitable and viable entity. (3) The financial statements examined and in conformity with GAAP. (4) The finansal statements are accurate and free of A Allof the above statements are true. B. Only statements (1) and (2) are true. CC Only statements (2) and (@) are ue. D.Allof the above statements are false. 2. An uditreport should be dated as of the ‘A date the report is delivered tothe entity audited. B. date the financial statements were approved by the client management. balance shaet date ofthe latest pariod reperted on. date letter of audit inquiry is recetved from the entity's attorney of record 3. Ifa company's extemal auditor expresses an unqualified opinion asa result of the aualt of the companys finan statements, readers of the audit report can assume that ‘A.The extemal auditor found ne fraud. 8B. The company is financial sound and the financial statements are accurate, C. intemal conta is effective. D. All material disagreements between the company and external auditor about the application of accounting prinsples wore resolved n the satisfaction of the external auditor. ‘A. “The description ofan auditin the scope paragraph of the standard audit report includes all ofthe folowing except: {A Evaluating the overall francial statement presentation, B. Assessing control isk. . Examining, ona test basis, evidence supporting the amount and disclosures inthe financial statements. D. Assessing the accounting principles used and significant estimates made by managernent. 55. The audit reportis normally addressed to the Board ofDirectors Stockholders Chair of the Audit Committee A no yes no 8. ves ves no ves yes ves D. yes no ves 6. comparative financial statements are presented and the present auctor has audited both years, the auditor should: ‘A Relssue the report & Dual date the report C. Redate the report D. Update the report 7. In-which ofthe following stuations would the auctor appropriately issue a standard unqualified report with no ‘explanatory paragraph concerning consistency? ‘A.A change in the method of accounting for specific substatarias that comprise the group of companies for which consolidated statements are presented. B.A change from an accounting principle that is not generally accepted to one that is generally accepted, CA change inthe percentage used ta calculate the provision for warranty expense. . Correction ofa mistake in the application ofa generally accented accounting principle.