Accounting 430 Final Study Guide
Exam and Accurate Answers 2025-
2026 Edition.
which of the following is not explicitly included in an audit report for a nonpublic company? -
Answer A statement that the auditor believes that all key audit matters have been properly
disclosed in the audit report
A basis for opinion section in the audit of the financial statements of a public company - Answer
Is included in all public company audit matters
When an auditor does not confirm material accounts receivable, but is satisfied by the
application of alternative auditing procedures, she normally should: - Answer Issue an
unmodified opinion with no reference to this omission
Which of the following procedures most likely would assist an auditor in identifying conditions
and events that may indicate substantial doubt about an entity's ability to continue as a going
concern? - Answer Inquiring of the entity's legal counsel about litigation, claims, and
assessments
When a client declines to disclose essential information in the financial statements or notes, the
auditor of the financial statements should: - Answer Provide the information in the audit
report, if practicable, and qualify the opinion because of a departure from GAAP
Which of the following accounting changes requires and Emphasis of Matter section regarding
consistency in a nonpublic company auditor's report? - Answer A change from LIFO to FIFO for
inventory valuation purposes
A client has changed the salvage values of a number of its fixed assets. The auditors of the
public company believe that the revised salvage values are realistic. The appropriate report on
the financial statement is: - Answer Standard unqualified
The unmodified standard audit report of a nonpublic company does not explicitly state that: -
Answer An audit includes determining that all major accounting policies are preferred
If the predecessor auditors do not reissue their audit report on comparative financial
, An audit client has refused to allow the auditors to perform an auditing procedure and there are
no other effective alternative procedures available. The circumstance would normally result in
the issuance of: - Answer A disclaimer of opinion
Which of the following is correct regarding the Basis for Opinion section in a standard
unqualified public company audit report? - Answer It follows the Opinion section
An auditor's report on comparative financial statements should be dated as of the date of the: -
Answer Accumulation of sufficient appropriate audit evidence
The first section of a public company audit report is the: - Answer Opinion Section
Which of the following is least likely to be a critical audit matter in a public company audit
report? - Answer An audit team member lacking experience in the client's industry
Which of the following is correct relating to compiled financial statements? - Answer A
compilation report must be issued
Is independence required when an accountant is engaged to either prepare or compile a client's
financial statements? - Answer Independence is not required to prepare or to compile
financial statements
It is the end of the client's first quarter and Bill Smith, CPA has been engaged to perform a
compilation and to issue a compilation report on the financial statements. The client does not
wish to present notes to the financial statements. The appropriate report includes: - Answer A
statement that if required disclosures were included, they may influence the financial statement
users' decisions
An accountant's standard report issued after compiling the financial statements of a nonpublic
entity should state that: - Answer A compilation provides no form of assurance on the
financial statements
Each page of the financial statements compiled by an accountant may include a reference such
as: - Answer See accountant's compilation report
Which of the following types of association with financial statements is least likely to result in a
Exam and Accurate Answers 2025-
2026 Edition.
which of the following is not explicitly included in an audit report for a nonpublic company? -
Answer A statement that the auditor believes that all key audit matters have been properly
disclosed in the audit report
A basis for opinion section in the audit of the financial statements of a public company - Answer
Is included in all public company audit matters
When an auditor does not confirm material accounts receivable, but is satisfied by the
application of alternative auditing procedures, she normally should: - Answer Issue an
unmodified opinion with no reference to this omission
Which of the following procedures most likely would assist an auditor in identifying conditions
and events that may indicate substantial doubt about an entity's ability to continue as a going
concern? - Answer Inquiring of the entity's legal counsel about litigation, claims, and
assessments
When a client declines to disclose essential information in the financial statements or notes, the
auditor of the financial statements should: - Answer Provide the information in the audit
report, if practicable, and qualify the opinion because of a departure from GAAP
Which of the following accounting changes requires and Emphasis of Matter section regarding
consistency in a nonpublic company auditor's report? - Answer A change from LIFO to FIFO for
inventory valuation purposes
A client has changed the salvage values of a number of its fixed assets. The auditors of the
public company believe that the revised salvage values are realistic. The appropriate report on
the financial statement is: - Answer Standard unqualified
The unmodified standard audit report of a nonpublic company does not explicitly state that: -
Answer An audit includes determining that all major accounting policies are preferred
If the predecessor auditors do not reissue their audit report on comparative financial
, An audit client has refused to allow the auditors to perform an auditing procedure and there are
no other effective alternative procedures available. The circumstance would normally result in
the issuance of: - Answer A disclaimer of opinion
Which of the following is correct regarding the Basis for Opinion section in a standard
unqualified public company audit report? - Answer It follows the Opinion section
An auditor's report on comparative financial statements should be dated as of the date of the: -
Answer Accumulation of sufficient appropriate audit evidence
The first section of a public company audit report is the: - Answer Opinion Section
Which of the following is least likely to be a critical audit matter in a public company audit
report? - Answer An audit team member lacking experience in the client's industry
Which of the following is correct relating to compiled financial statements? - Answer A
compilation report must be issued
Is independence required when an accountant is engaged to either prepare or compile a client's
financial statements? - Answer Independence is not required to prepare or to compile
financial statements
It is the end of the client's first quarter and Bill Smith, CPA has been engaged to perform a
compilation and to issue a compilation report on the financial statements. The client does not
wish to present notes to the financial statements. The appropriate report includes: - Answer A
statement that if required disclosures were included, they may influence the financial statement
users' decisions
An accountant's standard report issued after compiling the financial statements of a nonpublic
entity should state that: - Answer A compilation provides no form of assurance on the
financial statements
Each page of the financial statements compiled by an accountant may include a reference such
as: - Answer See accountant's compilation report
Which of the following types of association with financial statements is least likely to result in a
