Q3. The following four situations require a modification to the standard unqualified/unmodified audit report. Identify the modification required for each. a. Opinion based in part on the report of another auditor. b. Going concern. c. Lack of consistency. d. Additional emphasis. note: please only mention if its unqualified or unmodified audit report.

Q3. The following four situations require a modification to the standard unqualified/unmodified audit report. Identify the modification required for each. a. Opinion based in part on the report of another auditor. b. Going concern. c. Lack of consistency. d. Additional emphasis. note: please only mention if its unqualified or unmodified audit report.

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 24CYBK

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Which item regarding an Emphasis of Matter paragraph is true? a. The auditor will use the E of M to restrict distribution of the audit report. b. The auditor will use the E of M when the client has corrected an error in the previous financial statements. c. An E of M will be used when a material error exists in the current financial statements. d. The E of M paragraph is usually located immediately before the opinion paragraph. e. The E of M paragraph would be used to discuss a client's change in the method to estimate bad debts.
Which of the following is NOT an assertion relating to 'general presentation and disclosure-related audit objectives'? Select one: A) Completeness B) Accuracy and Valuation C) Occurrence D) cutoff
For each of the general audit procedures of (1) recalculation, (b) observation, (c) confirmation (accounts receivable, securities, or other assets),(d) inquiry, (e) inspection of internal documents, (f) recalculation, (g) reperformance, and (h) analytical procedures, Discuss one way the procedure could be misapplied or the auditorscould be misled in such a way as to render the work (audit evidence) misleading or irrelevant.
11 - Which of the following statements is not among the characteristics of the audit function ?A) The audit is carried out by an expert and independent person. B) Auditing is a degree of conformity. C) Auditing is a comparison activity. D) Audit is the process of collecting information and evidence in a subjective way and evaluating these sources. E) A report is prepared after the end of the audit activity.
Audit situations 1 through 10 present various independent factual situations an auditor might encounter in conducting an audit. List A represents the types of opinions the auditor ordinarily would issue, and List B represents the report modifications (if any) that would be necessary. For each situation, select one response from List A and one from List B. Select, as the best answer for each item, the action the auditor normally would take. Items from either list may be selected once, more than once, or not at all. Assume the following: The auditor is independent The auditor previously expressed an unqualified opinion on the prior-year financial statements unless otherwise noted Only single-year (not comparative) statements are presented for the current year (unless otherwise stated) The conditions for an unqualified opinion exist unless contradicted in the factual scenario The conditions stated in the factual scenario are material No report modifications are to be made except in…
With regard to corrective action on audit results, which of the following is not theinternal auditor’s responsibility?(1) Soliciting auditees’ suggestions for corrective actions.(2) Recommending possible alternative corrective actions.(3) Directing the corrective actions.(4) Determining that the corrective actions are responsive to the audit results.(5) Evaluating new policy statements to determine whether they address the unsatisfactory conditions disclosed in the audit results.
Which of the following is not included in the specific objectives of the auditor under ISA 250? a. Planning and performing the audit b. Performing specified audit procedures c. Obtaining sufficient appropriate evidence d. Responding appropriately to non-compliance
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The preliminary judgement about materiality is the ______________ amount by which the auditor believes the statements could be misstated and still not affect the economic decisions of users. The missing word in this sentence is: a. Average b. Minimum c. Maximum d. Median
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In the auditing process Select one: a. the criteria for evaluating information will not vary depending on the information being audited. b. the audit report communicates the auditor's findings to users. c. the types and amounts of evidence remain constant from audit to audit d. evidence are gathered by the auditor to determine whether the audited information is stated in accordance with SEC standards.
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