What type of opinion is issued by the auditorr if he or she is unable to determine the overall fairness of the financial statements?
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answer in 30 minutes
What type of opinion is issued by the auditorr if he or she is unable to determine the overall fairness of the financial statements?
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- answer in 30 minutes Discuss various type of opinion is issued by the auditorr if he or she is unable to determine the overall fairness of the statements?20. To correct all errors they discover in the accounting records for the year under audit. The auditors should prepare adjusting journal entries for material items only. Because they are concerned with the fairness, not the preciseness, of the client's financial statements. Select one:TrueFalse18. Explain about the type of report the Auditor would issue END of the EXAM a. if he disagrees with the management regarding accounting policies and inadequacy of disclosures in financial statements. b. if, during audit, the auditor requests certain documents, which the company refuses to provide.
- Assume that items 1–8 are situations that Blas, CPA, has encountered during his audit of GELAY, Inc., a private company. List A represents the types of opinions the auditor ordinarily would issue, and List B represents a portion of the needed report modifications — whether an additional paragraph will be included. For each situation, select one response from List A and one (1) from List B. Select the best answers for each item the action the auditor would normally take. The types of opinions in List A and the report modifications in List B may be selected once, more than once, or not at all. Assume the following: The auditor is The auditor previously expressed an unmodified opinion on the prior year’s financial Only single-year (not comparative) statements are presented for the current The conditions for an unmodified opinion exist unless contradicted by the The conditions stated in the items to be answered are material, unless otherwise Each item to be answered is independent of the…Assume that items 1–8 are situations that Blas, CPA, has encountered during his audit of GELAY, Inc., a private company. List A represents the types of opinions the auditor ordinarily would issue, and List B represents a portion of the needed report modifications — whether an additional paragraph will be included. For each situation, select one response from List A and one (1) from List B. Select the best answers for each item the action the auditor would normally The types of opinions in List A and the report modifications in List B may be selected once, more than once, or not at all. Assume the following: The auditor is independent The auditor previously expressed an unmodified opinion on the prior year’s financial Only single-year (not comparative) statements are presented for the current The conditions for an unmodified opinion exist unless contradicted by the The conditions stated in the items to be answered are material, unless otherwise Each item to be answered is…27. If the auditors disagree with management regarding an accounting principle used in the financial statements, the auditors should express their views in the notes to the financial statements." Select one:TrueFalse
- What are key audit matters? How do these affect the format of the audit report? maximum 200 words)b) Stewart Jones is reviewing the results of the subsequent events audit procedures. Stewart iswriting a report for his audit partner based on these results and will be attending a meetingtomorrow with the partner and representatives of the company to discuss them. The issue will bewhether the financial report should be amended, or additional notes included for thesesubsequent events.Many of the items are not material and Stewart will recommend that no action be taken withrespect to these. However, there are several items that Stewart believes are material and shouldbe discussed at the meeting. These are as follows.(a) The board is planning to issue shares in a private placement on 15 August. (b) The share issue is to fund the purchase of a 60 per cent stake in another company. Thenegotiations are in the final stages and although the contract is not yet signed it will be signedby 15…Which of the following statements would most likely appear in an auditor's engagement letter? a. Fees for our services are based on our regular per diem rates, plus travel and other out-of-pocket expenses. b. The auditor's preliminary assessment of the risk factors relating to misstatements arising from fraudulent financial reporting. c. A reminder that management is responsible for illegal acts committed by employees. d. After performing our preliminary analytical procedures, we will discuss with you the other procedures we consider necessary to complete the engagement. e. Required evidence is needed to issue a qualified opinion.At the closing meeting, a representative of the top management of the auditeeorganisation informs the auditor that they have now implemented a processto correct a serious nonconformity that the auditor found on the first day of atwo-day Stage 2 audit. The representative of top management proposes thatthe auditor examine the process during the meeting and then withdraw thenonconformity report. How should the auditor respond?
- Select the necessary words from the list of possibilities to complete the following statements: adverse, basis for modification paragraph(or basis for qualified opinion paragraph, CPA firm, disclaimer of opinion, expressing an opinion, management, unmodified, unqualified, update Statements Answer 1. If the auditors have examined the prior year's financial statements presented for comparative purposes, they should __________ their opinion for any new information. 5. All nonpublic company audit reports that are qualified should contain a(n) __________ explaining the details of the qualification.You were assigned to audit the financial statements of Swansea Corporation as at and for the year ended December 31, 2021. Your senior asked you to draft a memo on materiality and tolerable error for your client. Swansea Corporation has incurred substantial net losses due to COVID-19 pandemic. Up to 2019, it has been profitable. Which of the following is least likely to be your starting point in computing materiality? Group of answer choices Normalized net income Net loss Total assets Normalized revenuesSaleha was recently hired by the accounting firm of Haron & Associates. After two weeks of joining the firm, Saleha was sent to the first-year staff training course.The instructor asked her to prepare answers for the following questions:a. How does evidence relate to assertions and to the audit report?b. What are the characteristics of evidence should an auditor be concerned with when searching for and evaluating evidence? c.List and explain the objective and benefits of financial statement audit.
