What terms can be used to express an unmodified opinion on financial statements prepared in accordance with a fair presentation framework?a. Present fairly, in all material respectsO b. Financial statements are materially misstated and pervasiveO c. Subject toO d. With the foregoing explanation

An unmodified opinion is expressed when the auditor concludes that financial statements are…

What terms can be used to express an unmodified opinion on financial statements prepared in accordance with a fair presentation framework? O a. Present fairly, in all material respects O b. Financial statements are materially misstated and pervasive O . Subject to O d. With the foregoing explanation

What terms can be used to express an unmodified opinion on financial statements prepared in accordance with a fair presentation framework? O a. Present fairly, in all material respects O b. Financial statements are materially misstated and pervasive O . Subject to O d. With the foregoing explanation

Auditing: A Risk Based-Approach to Conducting a Quality Audit

10th Edition

ISBN:9781305080577

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter15: Audit Reports On Financial Statements

Section: Chapter Questions

Problem 26MCQ

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Which management assertion addresses whether the components of the financial statements arc properly classified, described, and disclosed? a. Completeness. b. Existence. c. Rights and obligations. d. Presentation and disclosure. c. None of the above address whether the components of the financial statements arc properly classified, described, and disclosed.
Materiality arises when a misstatement in the financial statements could affect a decision of areasonable user of the statements.Explain the levels of materiality used for determining the type of opinion.
Something is deemed to be 'material' if its omission, non-disclosure or misstatement is likely to affect economic decisions or other evaluations made by users entitled to rely on the financial statements. Select one alternative: True False
Which of the following statements about the IASB and FASB conceptual frameworks is not correct? a. The IASB conceptual framework does not identify revenues and gains as separate elements. b. The existing IASB and FASB conceptual frameworks are similar. c. The FASB and IASB agree that an objective of financial reporting is to provide useful information to investors and creditors. d. IFRS does not allow use of fair value as a measurement basis.
Explain the importance of analytical procedures as evidence indetermining the fair presentation of the financial statements.
Directions: Please select the appropriate answer on the statement below;B - If the statement is trueS - When the statement is false or part of the statement is false The objective of the first reporting standard is to ensure that comparisons of financial statements between periods do not have a material impact on changes in accounting standards or provide adequate disclosures if those changes have a material impact on the comparison of financial statements between periods.
Which type of audit report specifies that financial statements do not present fairly the financial position, results of operations, and cash flows in conformity with accounting standards? A. Qualified report B. Adverse report C. Unqualified report D. Disclaimer of opinion
Which statement is incorrect? a. Notes to financial statements provide narrative description or disaggregation of items disclosed in F/S and information about items that do not qualify for recognition. b. Notes to financial statements are an integral part of financial statements. c. Notes to financial statements amplify the items presented in the financial statements. d. Notes to financial statements is the best demonstration of the standard of adequate disclosure. e. none of the above
The authoritative status of The Conceptual Framework for Financial Reporting is as follows: a. It is used when there is no standard or interpretation related to the reporting issues under consideration. b. It is not as authoritative as a standard but takes precedence over any interpretation related to the reporting issue. c. It takes precedence over all other authoritative literature. d. It has no authoritative status.
How can a misstatement in one financial statement, whether intentional or not, affect a presentation in another financial statement?
1. Which statement is incorrect regarding materiality judgments? A. An entity is only required to apply recognition and measurement equirements in PFRSS when the effect of applying them material. B. An entity need not provide a disclosure specified by a PFRS if the information resulting from that disclosure is not material. C. Public availability of information relieves an entity of the obligation to provide material information in its financial statements. D. It is inappropriate for the entity to make, or leave uncorrected, immaterial departures from PFRSs to achieve a particular presentation of its financial position, financial performance or cash flows. 2. Which of the following is an appropriate aggregation? A. Cash and cash equivalents (Cash in bank and sinking fund) B. Trade and other receivables (Accounts receivable and investment in bonds) C. Trade and other payables (Accounts payable and accruals) D. Provisions (Income tax payable and warranty liability) 3. Which of the…
When an event impacts a financial statement element, it should be recognized in the accounting records even if reliability of the amount is questionable. True False