Questions Multiple Choice Questions: Choose the best response A.The date of the CPA’s opinion on the financial statements of the client should be the date of the 1. Closing of the client’s books. 2. Finalization of the terms of the audit engagement. | 3)\@ompletion of all important audit procedures: 4. Submission of the report to the client. Wy Ww B.If a principal auditor decides to refer in his or her report to the audit of another auditor, he or she is required to disclose the 1. Name of the other auditor. 2. Nature of the inquiry into the other auditor's ea , axel Pihe review professional standing and extent of the revte ‘Scanned with CamScanner3} of the other auditor’s work. 4. Reasons for being unwilling to assume responsibility for the other auditor’s work. C. When the financial statements are fairly stated but the auditor concludes there is substantial doubt whether the client can continue in existence. the auditor should issue a(an) 1. Adverse opinion. 2. Qualified opinion only. a > 3. Unqualified opinion. \ ARR oPnanethssplanor Wavasephe: D. Under which of the following circumstances would a disclaimer of opinion not be appropriate? The auditor js unable to determin: the amounts ‘Scanned with CamScannerassociated with an employee fraud scheme Le! / eos 3, The client ion to refuses the auditor permiss confirm certain accounts receivable or apply alternative procedures to verify their balances. cutive officer is unwilling to sign 4. The chief e» the management representation letter. ADE. Which of the following statements about a combined report on the financial statements and internal control over financial reporting is correct? | is for the 1. The auditor’s opinion on internal contre nion OF the same period of time as the opin financial statements. , a aragraphs for we The report includes additional paragraphs f inter nal efiniti ae control. definition and limitations ¢! . The introductory, scope: @ are uncl ; € unch wed from a report ‘Scanned with CamScannermancial statements only 4 GAAP is the framework used to evaluate internal control 1 An audit of historical financial statements most commonly includes the: Balance sheet. statement of retained earnings, and the statement of cash flows. Income statement. the statement of cash flows, and the atement of net working capital. * Statement of cash flows. balance sheet, and the statement of retained earnings, tandards require ds require that the audit report must he tithe must >a CPA € ithe ad * proprivt ‘Scanned with CamScannerll partnership. oF incorporated. pa 4. Indicate the type of audit opinion issued B. The scope paragraph of the standard unqualified audit report states that the audit is designed to |, Discover all errors and/or irregularities Discover material errors and/or irregular 3, Conform to generally accepted accounting, principles. > True or false Questions . audited |The financial statements most commonly audite cet. the by external auditors are the balance sheet atement of changes income statement. and the felained carnings. A. True st ‘Scanned with CamScanner illport because it provides absolute 4 auditor rt provides. assurance the report Prove A. True 6 | —_ 3. AICPA professional standards provide uniform wording for the auditor's report to enable users of the financial statements understand the audit report, oS B. False The introductory Paragraph of the auditor's report Stales that the auditor is responsible for the preparati sential Preparation, presentation and opinion on financial statements, A. True eat 5. The angi Me audit Teport date 1s the date the auditor complet uidit Procedures in the field, ‘Scanned with CamScannerill B. False 4, audit reports issued for Financial statements of a public company should refer to generally a i, epted auditing standards in the scope paragraph B. False C 7. Audit reports issued for financial statements of a private company should refer to generally accepted auditing standards in the scope paragraph. B. False 8. A modified unqualified auditor report arises when the auditor believes the financials are fairly stated but also believes additional information should be provided. yO7 ability of the (> lems that materially affect the comparability of ly require disclosure 1" financial statements general the footnotes. A. True B. False ‘Scanned with CamScanner