D215 Unit 11, Ch.11, Module 16-17 Unit Test A & B Questions and Answers
M16_1 Which of the following phrases would be found in standards require that we plan and perform the audit to obtain reasonable
the standard unmodified audit report for a private assurance
company:
M16_2 In a public company audit, the audit report is the board of directors and shareholders
addressed to the:
M16_3 When the audit opinion is based in part on the the auditor's responsibility paragraph has added wording stating that other
work of another auditor, which of the following changes completed a potion of the audit
are made to the standard unmodified audit report:
M16_4 Describe modifications required to an auditor's when the subsidiary audited by the component auditor is a material amount of the
report on financial statements when the opinion is based group financial statements
in part on the report of another auditor. The group
engagement partner typically decides to reference the
work completed by the component auditor in the audit
report _.
M16_5 Which is true about the opinion section of audit It reports on both internal controls and the consolidated financial statements
report for a public company?
M16_6 If auditors identify only one material weakness in a adverse opinion
client's internal control system, the appropriate report to
issue is a(n):
M17_7 If a client has a going concern issue that has been issue an unmodified report and add an emphasis-of-matter paragraph after the
properly disclosed in the notes, the auditor should: opinion paragraph to highlight the going concern issue
M17_8 Which of the following is true of an emphasis-of- The rules are similar in public and private companies for emphasis-of-matter
matter paragraph? paragraphs
, M17_9 A emphasis-of-matter paragraph is used with an a significant uncertainty exists that should be brought to the financial statements
unmodified opinion when: user's attention
M17_10 An emphasis-of-matter paragraph refers to when issues an unmodified opinion but may include an additional paragraph in the
an auditor___ _. report to draw attention to important information
M17_11 Which of the following is an example of a modified A qualified opinion
opinion?
M17_12 If the auditor encounters a material, but not A qualified or disclaimer of opinion
pervasive, scope limitation and cannot obtain sufficient
appropriate audit evidence regarding the fair
presentation of the financial statements, what type of
report would be issued?
M17_13 When a client has a going concern issue, AU-C emphasis-of-matter paragraph be added to the unmodified report, after the
570 the Auditor's Consideration of an Entity's Ability to opinion paragraph
Continue as a Going Concern require an _.
M17_14 Companies typically present their financial two consecutive years of balance sheets and three consecutive years of the
statements in comparative form, which means showing income statement, statement of cash flows, and statement of stockholder's equity
_____.
M17_15 If an auditor becomes aware after the date of the discuss the matter with management and, if appropriate, those charged with
auditors report but before the financial statements are governance
issued, of a fact that may materially affect the financial
statements, the first step the auditor should take is to:
M17_16 The dual dating of an audit report means: the auditors performed audit procedures regarding a specific event that was after
the end of fieldwork
M17_17 The date of the auditor's report should be the date of the completion of fieldwork
______.
M17_18 If management revises the financial statements perform audit procedures on the changes made by management
due to subsequently discovered facts, auditors should
______.
U11A1 What should be included in this paragraph? A statement that an audit of the effectiveness of ICFR was conducted
U11A2 A manager at CPA Firm A is drafting an audit report It may be included in the audit report with its permission
on a client's consolidated financial statements. The audit
of a subsidiary of the client was performed by another
independent firm, CPA Firm B.
M16_1 Which of the following phrases would be found in standards require that we plan and perform the audit to obtain reasonable
the standard unmodified audit report for a private assurance
company:
M16_2 In a public company audit, the audit report is the board of directors and shareholders
addressed to the:
M16_3 When the audit opinion is based in part on the the auditor's responsibility paragraph has added wording stating that other
work of another auditor, which of the following changes completed a potion of the audit
are made to the standard unmodified audit report:
M16_4 Describe modifications required to an auditor's when the subsidiary audited by the component auditor is a material amount of the
report on financial statements when the opinion is based group financial statements
in part on the report of another auditor. The group
engagement partner typically decides to reference the
work completed by the component auditor in the audit
report _.
M16_5 Which is true about the opinion section of audit It reports on both internal controls and the consolidated financial statements
report for a public company?
M16_6 If auditors identify only one material weakness in a adverse opinion
client's internal control system, the appropriate report to
issue is a(n):
M17_7 If a client has a going concern issue that has been issue an unmodified report and add an emphasis-of-matter paragraph after the
properly disclosed in the notes, the auditor should: opinion paragraph to highlight the going concern issue
M17_8 Which of the following is true of an emphasis-of- The rules are similar in public and private companies for emphasis-of-matter
matter paragraph? paragraphs
, M17_9 A emphasis-of-matter paragraph is used with an a significant uncertainty exists that should be brought to the financial statements
unmodified opinion when: user's attention
M17_10 An emphasis-of-matter paragraph refers to when issues an unmodified opinion but may include an additional paragraph in the
an auditor___ _. report to draw attention to important information
M17_11 Which of the following is an example of a modified A qualified opinion
opinion?
M17_12 If the auditor encounters a material, but not A qualified or disclaimer of opinion
pervasive, scope limitation and cannot obtain sufficient
appropriate audit evidence regarding the fair
presentation of the financial statements, what type of
report would be issued?
M17_13 When a client has a going concern issue, AU-C emphasis-of-matter paragraph be added to the unmodified report, after the
570 the Auditor's Consideration of an Entity's Ability to opinion paragraph
Continue as a Going Concern require an _.
M17_14 Companies typically present their financial two consecutive years of balance sheets and three consecutive years of the
statements in comparative form, which means showing income statement, statement of cash flows, and statement of stockholder's equity
_____.
M17_15 If an auditor becomes aware after the date of the discuss the matter with management and, if appropriate, those charged with
auditors report but before the financial statements are governance
issued, of a fact that may materially affect the financial
statements, the first step the auditor should take is to:
M17_16 The dual dating of an audit report means: the auditors performed audit procedures regarding a specific event that was after
the end of fieldwork
M17_17 The date of the auditor's report should be the date of the completion of fieldwork
______.
M17_18 If management revises the financial statements perform audit procedures on the changes made by management
due to subsequently discovered facts, auditors should
______.
U11A1 What should be included in this paragraph? A statement that an audit of the effectiveness of ICFR was conducted
U11A2 A manager at CPA Firm A is drafting an audit report It may be included in the audit report with its permission
on a client's consolidated financial statements. The audit
of a subsidiary of the client was performed by another
independent firm, CPA Firm B.
