Audit Chapter 17

A nonpublic company's change in accounting principles that the auditors believe is not justified is likely to result in which of the following types of audit opinions?

Qualified - YES Unmodified with Emphasis-of-Matter - NO

Which of the following is least likely to result in inclusion of an additional paragraph being added to an audit report?

A decision not to confirm accounts receivable.

Which of the following ordinarily involves the addition of an emphasis - of -matter paragraph to an audit report of a nonpublic company?

A qualified opinion

The auditors who wish to draw reader attention to a financial statement note disclosure on significant transactions with related parties should disclose this fact in:

An emphasis - of - matter paragraph to the auditors' report

Assume that the opinion paragraph of an auditors' report begins as follow: "With the explanation give in Note 6, ... the financial statements referred to above present fairly ... "This is:

An improper type of reporting

The auditors' report should be dated as of the date the:

Auditors have accumulated sufficient appropriate evidence.

An audit report for a public client indicates that the financial statements were prepared in conformity with:

Generally accepted accounting principles (United States)

In an audit report on combined financial statements, reference to the fact that a portion of the audit was performed by a component auditor is:

Not to be construed as a qualification, but rather as a division of responsibility between two CPA firms

When the matter is properly disclosed in the financial statements of a nonpublic company, then likely result of substantial doubt about the ability of the client to continue as a going concern is the issuance of which of the following audit opinions?

Qualified - NO Unmodified with Emphasis-of-Matter - YES

What type or types of audit opinion are appropriate when financial statements are materially and pervasively misstated?

Qualified - YES Adverse - NO

An audit report for a public client indicates that the audit was performed in accordance with:

Standards of the Public Company Accounting Oversight Board (United States)

A material departure from generally accepted accounting principles will result in auditor consideration of:

Whether to issue an adverse opinion rather than a qualified opinion