Auditing Chapter 17

The auditor's report should be dated as of the date the:

Auditors have accumulated sufficient evidence

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

Generally accepted accounting principles (United States)

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

Qualified(No), Adverse(yes)

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

A consistency modification

Which of the following is LEAST likely to result in inclusion of an emphasis-of-matter paragraph in an audit report?

A decision not to confirm accounts receivable

The auditors who wish to draw reader attention to a financial statement note disclosure on significant transaction 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 follows: "With the explanation given in Note 6,... the financial statement referred to above present fairly..." This is:

An improper type of reporting

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 the two CPA firms.

When the matter is properly disclosed in the financial statements, the 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 opinion?

Qualified(No), Unmodified with Emphasis-of-Matter(Yes)

A 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)

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.