ACCT 401 - Chapter 17
Homework fully solved &
updated
CONCEPT REVIEW:
The emphasis-of-matter paragraph follows the opinion paragraph
and states that the auditor's opinion is not modified, but that the
matter is to be emphasized.
Match each paragraph with its corresponding reason for the
emphasis-of-matter paragraph based on the hint provided.
Paragraphs:
a. As discussed in Note XX to the financial statements, the Company
adopted SFAS XXX as of December 31, 20XX. Our opinion is not
modified with respect to this standard.
b. The accompanying consolidated financial statements have been
prepared assuming the Company will continue as a going concern,
but there is substantial doubt about its ability to continue as a
going concern.
c. As discussed in Note XX to the financial statements, the Company
is a defendant in a lawsuit.
Reason:
1. Going Concern Opinion
2. Auditor Discretionary Circumstances
3. Principles Not Consistently Applied - answer a. Principles not
consistently applied
b. Going Concern Opinion
, c. Auditor Discretionary Circumstances
1. Auditors may add an emphasis-of-matter paragraph that refers to
a matter that is _________ presented or disclosed.
2. A going concern is to be evaluated for a period not to exceed
_________ beyond the date of the financial statements.
3. If substantial doubt about a going concern exists, an ______
paragraph is the most common resolution.
4. An emphasis-of-matter paragraph always _______ the opinion
paragraph.
5.Changes in accounting estimates ______ result in an explanatory
paragraph. - answer 1. Appropriately
2. One year
3. Emphasis-of-Matter
4. Follows
5. Do not
Which of the following is a general purpose financial reporting
framework?
A. Auditing Standards of the Public Company Accounting Oversight
Board.
B. International Financial Reporting Standards.
C. Generally accepted auditing standards.
D. International Standards of Auditing. - answer B. International
Financial Reporting Standards
An auditor's report on comparative financial statements should be
dated as of the date of the:
A. Accumulation of sufficient appropriate audit evidence.
Homework fully solved &
updated
CONCEPT REVIEW:
The emphasis-of-matter paragraph follows the opinion paragraph
and states that the auditor's opinion is not modified, but that the
matter is to be emphasized.
Match each paragraph with its corresponding reason for the
emphasis-of-matter paragraph based on the hint provided.
Paragraphs:
a. As discussed in Note XX to the financial statements, the Company
adopted SFAS XXX as of December 31, 20XX. Our opinion is not
modified with respect to this standard.
b. The accompanying consolidated financial statements have been
prepared assuming the Company will continue as a going concern,
but there is substantial doubt about its ability to continue as a
going concern.
c. As discussed in Note XX to the financial statements, the Company
is a defendant in a lawsuit.
Reason:
1. Going Concern Opinion
2. Auditor Discretionary Circumstances
3. Principles Not Consistently Applied - answer a. Principles not
consistently applied
b. Going Concern Opinion
, c. Auditor Discretionary Circumstances
1. Auditors may add an emphasis-of-matter paragraph that refers to
a matter that is _________ presented or disclosed.
2. A going concern is to be evaluated for a period not to exceed
_________ beyond the date of the financial statements.
3. If substantial doubt about a going concern exists, an ______
paragraph is the most common resolution.
4. An emphasis-of-matter paragraph always _______ the opinion
paragraph.
5.Changes in accounting estimates ______ result in an explanatory
paragraph. - answer 1. Appropriately
2. One year
3. Emphasis-of-Matter
4. Follows
5. Do not
Which of the following is a general purpose financial reporting
framework?
A. Auditing Standards of the Public Company Accounting Oversight
Board.
B. International Financial Reporting Standards.
C. Generally accepted auditing standards.
D. International Standards of Auditing. - answer B. International
Financial Reporting Standards
An auditor's report on comparative financial statements should be
dated as of the date of the:
A. Accumulation of sufficient appropriate audit evidence.
