WGU D251 ADVANCED AUDITING
OBJECTIVE ASSESSMENT CONCLUDING
REVIEW SHEET PRACTICE SOLUTION
BUNDLED FULLY VERIFIED ONE
HUNDRED PERCENT PASS GUARANTEED
⩥ What is an example of the contents of an opinion paragraph in an
unqualified audit report?
"We have audited . . . ."
"The financial statements referred to above present fairly . . . ."
"An audit includes examining, on a test basis . . . ."
"Nothing came to our attention . . . .".
Answer: "The financial statements referred to above present fairly . . . ."
⩥ In which instance would an auditor most likely issue an unqualified
opinion without explanatory language?
,There is substantial doubt about the entity's ability to continue as a going
concern.
There is an immaterial deviation from GAAP related to capitalizing
repairs.
Management's disclosures are missing or inadequate.
There is a significant limitation on the scope of the engagement..
Answer: There is an immaterial deviation from GAAP related to
capitalizing repairs.
⩥ Audit reports are designed to promote clear communication between
the auditor and the financial statement user.
What is delineated in the audit report?
The experience level of the audit team
The client's opinion on the fairness of the financial statements
The results of the previous year's audit
,The relative responsibilities of the client and the auditor.
Answer: The relative responsibilities of the client and the auditor
⩥ Which report will most likely be issued when an auditor decides to
emphasize large related-party transactions occurring in the financial
statements of a client?
Adverse opinion with an explanatory paragraph
Disclaimer of opinion
A qualified opinion
An unqualified opinion with an explanatory paragraph.
Answer: An unqualified opinion with an explanatory paragraph
⩥ What would an audit firm be required to do if another CPA firm is
used to perform part of the engagement on a client's subsidiary?
Merge with the other CPA firm
Perform a peer review on the other CPA firm
, Verify the independence of the other CPA firm of the client
List the other firm in the footnotes to the client's financial statements.
Answer: Verify the independence of the other CPA firm of the client
⩥ Which type of opinion should an auditor most likely issue when a
client company has a history of negative cash flow trends and continuing
losses?
Disclaimer of opinion
Adverse
Unqualified with explanatory language
Qualified.
Answer: Unqualified with explanatory language
⩥ Which opinion may result from a justified departure from GAAP?
A qualified opinion
OBJECTIVE ASSESSMENT CONCLUDING
REVIEW SHEET PRACTICE SOLUTION
BUNDLED FULLY VERIFIED ONE
HUNDRED PERCENT PASS GUARANTEED
⩥ What is an example of the contents of an opinion paragraph in an
unqualified audit report?
"We have audited . . . ."
"The financial statements referred to above present fairly . . . ."
"An audit includes examining, on a test basis . . . ."
"Nothing came to our attention . . . .".
Answer: "The financial statements referred to above present fairly . . . ."
⩥ In which instance would an auditor most likely issue an unqualified
opinion without explanatory language?
,There is substantial doubt about the entity's ability to continue as a going
concern.
There is an immaterial deviation from GAAP related to capitalizing
repairs.
Management's disclosures are missing or inadequate.
There is a significant limitation on the scope of the engagement..
Answer: There is an immaterial deviation from GAAP related to
capitalizing repairs.
⩥ Audit reports are designed to promote clear communication between
the auditor and the financial statement user.
What is delineated in the audit report?
The experience level of the audit team
The client's opinion on the fairness of the financial statements
The results of the previous year's audit
,The relative responsibilities of the client and the auditor.
Answer: The relative responsibilities of the client and the auditor
⩥ Which report will most likely be issued when an auditor decides to
emphasize large related-party transactions occurring in the financial
statements of a client?
Adverse opinion with an explanatory paragraph
Disclaimer of opinion
A qualified opinion
An unqualified opinion with an explanatory paragraph.
Answer: An unqualified opinion with an explanatory paragraph
⩥ What would an audit firm be required to do if another CPA firm is
used to perform part of the engagement on a client's subsidiary?
Merge with the other CPA firm
Perform a peer review on the other CPA firm
, Verify the independence of the other CPA firm of the client
List the other firm in the footnotes to the client's financial statements.
Answer: Verify the independence of the other CPA firm of the client
⩥ Which type of opinion should an auditor most likely issue when a
client company has a history of negative cash flow trends and continuing
losses?
Disclaimer of opinion
Adverse
Unqualified with explanatory language
Qualified.
Answer: Unqualified with explanatory language
⩥ Which opinion may result from a justified departure from GAAP?
A qualified opinion
