Homework Assignment Week 1

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Homework Assignment Week 1 2-16 (Objective 2-6) The following questions deal with auditing standards. Choose the best response. A. International Standards on Auditing are established by the: (2) International Auditing and Assurance Standards Board. B. Which of the following best describes what is meant by U.S. generally accepted auditing standards? (2) Measures of the quality of the auditor’s performance. C. The general group of U.S. generally accepted auditing standards includes a requirement that (3) Due professional care be exercised by the auditor D. What is the general character of the three generally accepted auditing standards classified as standards of field work? (3) The criteria of audit planning and evidence gathering.…show more content…
3-25 (Objectives 3-5, 3-7, 3-8) The following questions concern audit reports other than unqualified audit reports with standard wording. Choose the best response. A. The annual audit of Midwestern Manufacturing revealed that sales were accidentally being recorded as revenue when the goods were ordered, instead of when they were shipped. Assuming the amount in question is material and the client is unwilling to correct the error, the CPA should issue: (3) A qualified “except for” opinion or adverse opinion. B. Under which of the following circumstances would a disclaimer of opinion not be appropriate? (2) Management does not provide reasonable justification for a change in accounting principles. C. The opinion paragraph of a CPA’s report states: “In our opinion, except for the effects of not capitalizing certain lease obligations, as discussed in the preceding paragraph, the financial statements present fairly,” in all material respects,… This paragraph expresses a(an) (3) Qualified opinion. 3-26 (Objective 3-1) A careful reading of an unqualified report indicates several important phrases. Explain why each of the following phrases or clauses is used rather than the alternative provided: A. “The financial statements referred to above present fairly in all material respects the financial position”
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