Audit-CPA exam || 100% verified solutions.
when Failure to include SCF, which opinion is most likely appropriate? correct answers
Qualified Opinion, since it is part of the basic Financial statements
Audit report of issuer FS need to contain which of the following? correct answers 1. Refer to the
standards of PCAOB
2. Title includes " Report of independent registered Public Accounting Firm
3. Contain the city and state of the office issuing report
4. A statement regarding auditor's independence.
What should group auditor do, if he decides to refer to the component auditor by name in the
group audit report? correct answers 1. Obtain written permission from the component auditor.
2. Make inquiries of the professional reputation and independence of component auditor.
When there is a substantial doubt of going concern, which auditor's opinion's is appropriate?
correct answers Unmodified with an emphasis of matter, or maybe disclaimer of opinion
An auditor expressed a qualified opinion on the prior year's financial statements because of a
lack of adequate disclosure. These financial statements are properly restated in the current year
and presented in comparative form with the current year's financial statements. The auditor's
updated report on the prior year's financial statements should correct answers Express an
unmodified opinion on the restated financial statements of PY
Piecemeal opinions are not allowed when which two audit opinions were determined? correct
answers Adverse & Disclaimer of opinion
Inclusion of inaccurate interim info required by FASB will result in what types of reports?
1. Unmodified
2. unmodified with other matter paragraph
, 3. Qualified
4. Adverse correct answers Exp: Unmodified with other matter paragraph, because interim FS
are considered unaudited.
When single year FS are presented, an auditor normally would express a standard audit report if,
1. auditor unable to obtain audited FS
2. Entity declines to present a SCF, BS, IS and Retained Earnings
3. Auditor wishes to emphasize an acct matter affecting the comparability of the FS with those of
PY.
4. PY FS were audited by another CPA whose report, which expressed an unmodified opinion, is
not present. correct answers 4 when PY FS are not presented, the cpa need not refer to them or
include the predecessor audit report.
When a substantive auditing procedure from PY audit was omitted, what would most likely
cause the auditor to promptly apply the omitted procedure correct answers If omission of the
procedure impairs auditor's ability to support PY audit opinion (and that people may be relying
on the FS), Omitted/ Alternative procedures should be applied.
what should auditor do with the following degree of possibility of a loss from a Contingent
liability
Remote likeliness, Reasonably possible, probable. correct answers No Disclosure,
Disclosure,
Adjustment to the FS & Disclosure
If an auditor disclaimed an opinion on the FS, the auditor's report included a statement that the
current asset portion of BS was fairly stated. What's wrong with this? correct answers The
auditor cannot issue a piecemeal opinion (which is included in the same auditor's report). Auditor
can express a separate report and separate opinion on a specific element, single FS.
when Failure to include SCF, which opinion is most likely appropriate? correct answers
Qualified Opinion, since it is part of the basic Financial statements
Audit report of issuer FS need to contain which of the following? correct answers 1. Refer to the
standards of PCAOB
2. Title includes " Report of independent registered Public Accounting Firm
3. Contain the city and state of the office issuing report
4. A statement regarding auditor's independence.
What should group auditor do, if he decides to refer to the component auditor by name in the
group audit report? correct answers 1. Obtain written permission from the component auditor.
2. Make inquiries of the professional reputation and independence of component auditor.
When there is a substantial doubt of going concern, which auditor's opinion's is appropriate?
correct answers Unmodified with an emphasis of matter, or maybe disclaimer of opinion
An auditor expressed a qualified opinion on the prior year's financial statements because of a
lack of adequate disclosure. These financial statements are properly restated in the current year
and presented in comparative form with the current year's financial statements. The auditor's
updated report on the prior year's financial statements should correct answers Express an
unmodified opinion on the restated financial statements of PY
Piecemeal opinions are not allowed when which two audit opinions were determined? correct
answers Adverse & Disclaimer of opinion
Inclusion of inaccurate interim info required by FASB will result in what types of reports?
1. Unmodified
2. unmodified with other matter paragraph
, 3. Qualified
4. Adverse correct answers Exp: Unmodified with other matter paragraph, because interim FS
are considered unaudited.
When single year FS are presented, an auditor normally would express a standard audit report if,
1. auditor unable to obtain audited FS
2. Entity declines to present a SCF, BS, IS and Retained Earnings
3. Auditor wishes to emphasize an acct matter affecting the comparability of the FS with those of
PY.
4. PY FS were audited by another CPA whose report, which expressed an unmodified opinion, is
not present. correct answers 4 when PY FS are not presented, the cpa need not refer to them or
include the predecessor audit report.
When a substantive auditing procedure from PY audit was omitted, what would most likely
cause the auditor to promptly apply the omitted procedure correct answers If omission of the
procedure impairs auditor's ability to support PY audit opinion (and that people may be relying
on the FS), Omitted/ Alternative procedures should be applied.
what should auditor do with the following degree of possibility of a loss from a Contingent
liability
Remote likeliness, Reasonably possible, probable. correct answers No Disclosure,
Disclosure,
Adjustment to the FS & Disclosure
If an auditor disclaimed an opinion on the FS, the auditor's report included a statement that the
current asset portion of BS was fairly stated. What's wrong with this? correct answers The
auditor cannot issue a piecemeal opinion (which is included in the same auditor's report). Auditor
can express a separate report and separate opinion on a specific element, single FS.
