ACC 480 Exam Questions And Answers 100% Verified

ACC 480 Exam Questions And Answers 100% Verified Which of the following is a change that affects the comparability and consistency of the financial statements? Correction of a material misstatement in previously issued financial statements. Reducing the expected service life of a truck from 7 to 5 years to better reflect how long a company's trucks are actually lasting. Change in accounting estimate. Change in classification of assets from long-term to current. - answerCorrection of a material misstatement in previously issued financial statements. What type of report is issued when the financial statements are not presented fairly? Adverse. Highly qualified. Qualified. Unqualified/Unmodified. - answerAdverse. If the principal auditor decides to make reference to other auditors used in the engagement, the audit report must make reference to Whether the other auditors are members of the SEC Division of firms. The name of the other auditor. The portion or parts of the financial statements examined by the other auditors. Whether or not a subsidiary corporation was examined. - answerThe portion or parts of the financial statements examined by the other auditors. When conducting a review, the accountant's work would generally not include which of the following procedures? Obtaining a representation letter from management. Observing the year-end inventory count and subsequent testing of inventory counts. Obtaining a general understanding of the entity's methods and policies related to the capitalization of assets. Performing analytical procedures. - answerObserving the year-end inventory count and subsequent testing of inventory counts. Which of the following is true with respect to a scope limitation? The auditor will generally issue a qualified report or disclaim an opinion. The auditor may not issue an unqualified/unmodified report even if the auditor can compensate for the scope limitation by performing alternative procedures. The auditor should withdraw from the engagement. The auditor can choose to issue an adverse report or disclaim an opinion. - answerThe auditor will generally issue a qualified report or disclaim an opinion. When a CPA firm examines projected financial statements, the firm's report should include a separate paragraph that Provides an explanation of the difference between an audit and an examination. Disclaims an opinion on whether the assumptions listed provide a reasonable basis for the projection. Limits distribution of the projections to specified users. States that the CPA firm is responsible for the opinion presented for only a specified amount of time. - answerLimits distribution of the projections to specified users. Which of the following is not a situation that would require an explanatory paragraph in an unqualified/unmodified report? The auditor performs an integrated audit and issues separate reports on the company's financial statements and internal control over financial reporting. The auditor is unable to apply necessary procedures because of a client imposed restriction. The auditor decides to refer to the report of other auditors as the basis, in part, for the auditor's own report.