AUDITING AND ASSURANCE SERVICES A
SYSTEMATIC APPROACH 12TH EDITION
WILLIAM MESSIER TEST BANK ACTUAL
EXAMINATION 2026 QUESTIONS WITH
SOLUTIONS GRADED A+
⫸ Which of the following situations would not result in auditors adding
an emphasis-of-matter paragraph or section to their report without
modifying the remainder of the report?
- reference to a change in the method of accounting mandated by the
issuance of a new accounting standard
- reference to a going-concern uncertainty facing the entity
- reference to a departure from GAAP that is material, but not pervasive,
to the financial statements
- reference to an acquisition made by the entity during the most recent
fiscal year Answer: reference to a departure from GAAP that is material,
but not pervasive, to the financial statements
⫸ Which of the following statements is not included in the Basis for
Opinion Section of the standard (unmodified) report on the entity's
financial statements?
- "We are required to communicate with those charged with
governance..."
- "We are required to be independent of [the client]..."
,- "We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion."
- "We conducted our audit in accordance with...(GAAS)" Answer: "We
are required to communicate with those charged with governance..."
⫸ Auditors are required to reference consistency in their report when
there are changes in
- accounting estimates
- the format of the Statement of Cash Flows
- the classification of financial statement amounts
- accounting principles Answer: accounting principles
⫸ If financial statements contain a material but non-pervasive departure
from generally accepted accounting principles, the auditors should
render a(n)
- qualified opinion with reference to departure
- adverse opinion with scope limitation reference
- adverse opinion with reference to departure
- disclaimer of opinion Answer: qualified opinion with reference to
departure
⫸ Which of the following scope limitations would ordinarily be of most
concern to the auditors?
- the inability to observe inventories because auditors were appointed
following the date of the financial statements
,- management's refusal to provide auditors with written representations
- the inability to obtain confirmation of year-end balances from
customers because of different billing dates
- the use of the work of component auditors in the audit of group
financial statements Answer: management's refusal to provide auditors
with written representations
⫸ When auditors are engaged to examine an entity's financial
statements but decide to issue a disclaimer of opinion because of a scope
limitation, the report would not
- identify management's responsibility for the financial statements
- refer to any scope limitation in the Basis for Opinion Section
- modify the Auditor's Responsibilities for the Audit of the Financial
Statements Section to identify the basis for the disclaimer
- indicate that the auditors were engaged to audit the financial statements
Answer: modify the Auditor's Responsibilities for the Audit of the
Financial Statements Section to identify the basis for the disclaimer
⫸ A report that acknowledges reliance on the reports of component
auditors is a type of report modification known as a(n)
- qualification
- division of responsibility
- expansion of scope
- scope limitations Answer: division of responsibility
, ⫸ "As described in Note 5 to the financial statements, General Express
changed its statistical method of computing product warranty expense
for the year ended December 31, 20x1..." is an illustration of a
- consistency change requiring a qualified opinion
- scope limitation
- departure from generally accepted accounting principles
- report with a consistency modification Answer: report with a
consistency modification
⫸ The auditors' report on the entity's financial statements included
language disclosing a difference of opinion between the auditors and the
entity for which the auditors believed an adjustment to the financial
statements should be made. The Opinion Section of the auditors' report
should express a(n)
- unmodified opinion
- qualified opinion citing a departure from generally accepted accounting
principles
- qualified opinion citing a scope limitation and lack of specific evidence
- disclaimer of opinion Answer: qualified opinion citing a departure
from generally accepted accounting principles
⫸ Auditors will issue an adverse opinion when
- a severe scope limitation has been imposed by the entity
- a violation of generally accepted accounting principles is sufficiently
material and pervasive that a qualified opinion is not justified
SYSTEMATIC APPROACH 12TH EDITION
WILLIAM MESSIER TEST BANK ACTUAL
EXAMINATION 2026 QUESTIONS WITH
SOLUTIONS GRADED A+
⫸ Which of the following situations would not result in auditors adding
an emphasis-of-matter paragraph or section to their report without
modifying the remainder of the report?
- reference to a change in the method of accounting mandated by the
issuance of a new accounting standard
- reference to a going-concern uncertainty facing the entity
- reference to a departure from GAAP that is material, but not pervasive,
to the financial statements
- reference to an acquisition made by the entity during the most recent
fiscal year Answer: reference to a departure from GAAP that is material,
but not pervasive, to the financial statements
⫸ Which of the following statements is not included in the Basis for
Opinion Section of the standard (unmodified) report on the entity's
financial statements?
- "We are required to communicate with those charged with
governance..."
- "We are required to be independent of [the client]..."
,- "We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion."
- "We conducted our audit in accordance with...(GAAS)" Answer: "We
are required to communicate with those charged with governance..."
⫸ Auditors are required to reference consistency in their report when
there are changes in
- accounting estimates
- the format of the Statement of Cash Flows
- the classification of financial statement amounts
- accounting principles Answer: accounting principles
⫸ If financial statements contain a material but non-pervasive departure
from generally accepted accounting principles, the auditors should
render a(n)
- qualified opinion with reference to departure
- adverse opinion with scope limitation reference
- adverse opinion with reference to departure
- disclaimer of opinion Answer: qualified opinion with reference to
departure
⫸ Which of the following scope limitations would ordinarily be of most
concern to the auditors?
- the inability to observe inventories because auditors were appointed
following the date of the financial statements
,- management's refusal to provide auditors with written representations
- the inability to obtain confirmation of year-end balances from
customers because of different billing dates
- the use of the work of component auditors in the audit of group
financial statements Answer: management's refusal to provide auditors
with written representations
⫸ When auditors are engaged to examine an entity's financial
statements but decide to issue a disclaimer of opinion because of a scope
limitation, the report would not
- identify management's responsibility for the financial statements
- refer to any scope limitation in the Basis for Opinion Section
- modify the Auditor's Responsibilities for the Audit of the Financial
Statements Section to identify the basis for the disclaimer
- indicate that the auditors were engaged to audit the financial statements
Answer: modify the Auditor's Responsibilities for the Audit of the
Financial Statements Section to identify the basis for the disclaimer
⫸ A report that acknowledges reliance on the reports of component
auditors is a type of report modification known as a(n)
- qualification
- division of responsibility
- expansion of scope
- scope limitations Answer: division of responsibility
, ⫸ "As described in Note 5 to the financial statements, General Express
changed its statistical method of computing product warranty expense
for the year ended December 31, 20x1..." is an illustration of a
- consistency change requiring a qualified opinion
- scope limitation
- departure from generally accepted accounting principles
- report with a consistency modification Answer: report with a
consistency modification
⫸ The auditors' report on the entity's financial statements included
language disclosing a difference of opinion between the auditors and the
entity for which the auditors believed an adjustment to the financial
statements should be made. The Opinion Section of the auditors' report
should express a(n)
- unmodified opinion
- qualified opinion citing a departure from generally accepted accounting
principles
- qualified opinion citing a scope limitation and lack of specific evidence
- disclaimer of opinion Answer: qualified opinion citing a departure
from generally accepted accounting principles
⫸ Auditors will issue an adverse opinion when
- a severe scope limitation has been imposed by the entity
- a violation of generally accepted accounting principles is sufficiently
material and pervasive that a qualified opinion is not justified
