Homework Help is Here – Start Your Trial Now!
Business
Accounting
For each of the following situations, indicate the type of report that would be required as well as how various paragraphs/sections of he auditors'report would be modified in the audit of an issuer. Assume any amount in question is material on an overall basis (but not pervasive) unless otherwise noted. 1. The entity is subject to a going-concern uncertainty and has properly disclosed this uncertainty in its financial statements. 2. The entity has changed from an accounting principle in accordance with GAAP to an accounting principle not in accordance with GAAP. 3. The audit team encounters a material, but not pervasive, scope limitation; this limitation has not been imposed by the client. 4. The entity's financial statements are presented in accordance with GAAP. 5. The entity has changed from one accounting principle in accordance with GAAP to another principle in accordance with GAAP; this change has been properly reported by restating prior years' financial statements. 5. After accepting the engagement, the audit team determines that the firm is not independent. 7. The entity's financial statements contain a material and pervasive departure from GAAP. 3. The group auditors' opinion on group financial statements is based partially on the report of component auditors. 9. The entity presents condensed financial statements along with its full set of financial statements. ). The audit team was unable to observe ending inventories because of late appointment, this represented a material and pervasive

For each of the following situations, indicate the type of report that would be required as well as how various paragraphs/sections of he auditors'report would be modified in the audit of an issuer. Assume any amount in question is material on an overall basis (but not pervasive) unless otherwise noted. 1. The entity is subject to a going-concern uncertainty and has properly disclosed this uncertainty in its financial statements. 2. The entity has changed from an accounting principle in accordance with GAAP to an accounting principle not in accordance with GAAP. 3. The audit team encounters a material, but not pervasive, scope limitation; this limitation has not been imposed by the client. 4. The entity's financial statements are presented in accordance with GAAP. 5. The entity has changed from one accounting principle in accordance with GAAP to another principle in accordance with GAAP; this change has been properly reported by restating prior years' financial statements. 5. After accepting the engagement, the audit team determines that the firm is not independent. 7. The entity's financial statements contain a material and pervasive departure from GAAP. 3. The group auditors' opinion on group financial statements is based partially on the report of component auditors. 9. The entity presents condensed financial statements along with its full set of financial statements. ). The audit team was unable to observe ending inventories because of late appointment, this represented a material and pervasive

Auditing: A Risk Based-Approach (MindTap Course List)
Auditing: A Risk Based-Approach (MindTap Course List)
11th Edition
ISBN:9781337619455
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Chapter15: Audit Reports For Financial Statement Audits
Section: Chapter Questions
Problem 3CYBK
See similar textbooks
icon
Related questions
Question
Please do not give image format
Part 1. 2 3. 4 5. 6. 7. 8. 9. 10. Opinion Opinion on the Financial Statements Section Basis for Opinion Section Critical Audit Matters Section Additional Section or Paragraph
Transcribed Image Text:Part 1. 2 3. 4 5. 6. 7. 8. 9. 10. Opinion Opinion on the Financial Statements Section Basis for Opinion Section Critical Audit Matters Section Additional Section or Paragraph
For each of the following situations, indicate the type of report that would be required as well as how various paragraphs/sections of the auditors'report would be modified in the audit of an issuer. Assume any amount in question is material on an overall basis (but not pervasive) unless otherwise noted. 1. The entity is subject to a going-concern uncertainty and has properly disclosed this uncertainty in its financial statements. 2. The entity has changed from an accounting principle in accordance with GAAP to an accounting principle not in accordance with GAAP. 3. The audit team encounters a material, but not pervasive, scope limitation; this limitation has not been imposed by the client. 4. The entity's financial statements are presented in accordance with GAAP. 5. The entity has changed from one accounting principle in accordance with GAAP to another principle in accordance with GAAP; this change has been properly reported by restating prior years' financial statements. 6. After accepting the engagement, the audit team determines that the firm is not independent. 7. The entity's financial statements contain a material and pervasive departure from GAAP. 8. The group auditors' opinion on group financial statements is based partially on the report of component auditors. 9. The entity presents condensed financial statements along with its full set of financial statements. 10. The audit team was unable to observe ending inventories because of late appointment; this represented a material and pervasive limitation on the scope of their examination.
Transcribed Image Text:For each of the following situations, indicate the type of report that would be required as well as how various paragraphs/sections of the auditors'report would be modified in the audit of an issuer. Assume any amount in question is material on an overall basis (but not pervasive) unless otherwise noted. 1. The entity is subject to a going-concern uncertainty and has properly disclosed this uncertainty in its financial statements. 2. The entity has changed from an accounting principle in accordance with GAAP to an accounting principle not in accordance with GAAP. 3. The audit team encounters a material, but not pervasive, scope limitation; this limitation has not been imposed by the client. 4. The entity's financial statements are presented in accordance with GAAP. 5. The entity has changed from one accounting principle in accordance with GAAP to another principle in accordance with GAAP; this change has been properly reported by restating prior years' financial statements. 6. After accepting the engagement, the audit team determines that the firm is not independent. 7. The entity's financial statements contain a material and pervasive departure from GAAP. 8. The group auditors' opinion on group financial statements is based partially on the report of component auditors. 9. The entity presents condensed financial statements along with its full set of financial statements. 10. The audit team was unable to observe ending inventories because of late appointment; this represented a material and pervasive limitation on the scope of their examination.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Audit Report
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
Auditing: A Risk Based-Approach (MindTap Course L…
Auditing: A Risk Based-Approach (MindTap Course L…
Accounting
ISBN:
9781337619455
Author:
Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:
Cengage Learning
Auditing: A Risk Based-Approach to Conducting a Q…
Auditing: A Risk Based-Approach to Conducting a Q…
Accounting
ISBN:
9781305080577
Author:
Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:
South-Western College Pub
Contemporary Auditing
Contemporary Auditing
Accounting
ISBN:
9781337650380
Author:
KNAPP
Publisher:
Cengage
SEE MORE TEXTBOOKS