Which of the following would not require an explanatorylemphasis-of-matter paragraph in the auditor's report? * O Going concern. Additional emphasis. O Opinion based in part on the report of another auditor. O Lack of consistency in the financial statements due to accounting changes.
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A: Given: The issue to the auditors if the unfair financial statements are concluded.
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A: The Other Matter paragraph is the audit report is written to communicate all the necessary matters…
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A:
Q: Examples of unmodified opinions which contain modified wording (without adding anemphasis-of-matter…
A: Answer: Option D.
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A: An Auditor will express an unqualified opinion when financial statements are prepared in all…
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A: The audit report offers a summary for a given fiscal year of a company's financial performance.
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A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
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Q: The auditor shall express what kind of opinion when the auditor, having obtained sufficient…
A: Auditor will review the financial statements of a firm and perform auditing procedures, where the…
Q: If the auditor expresses an adverse or disclaimer of opinion on the complete set of…
A:
Q: Other changes may affect comparability but not consistency in the use of accounting principles and…
A: The question is related to Auditing. Accounting Principles are specific guidelines and principles…
Q: itor to modify the opinion in accordance with ISA 705 (Revised) Modifications to the Opinion of the…
A: Auditor's report refers to a report in which the auditor state that the financial statements…
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A: A contingency is a character or any rationally possible losses and any pledges, including highest…
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A: Disclaimer:- Since you asked multiple question in one question, we will provide you the answer of…
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A: An unqualified opinion is issued by an independent auditor when he/she determines that the financial…
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A: The Generally Accepted Accounting Principles (GAAP ) are a collection of accounting rules and…
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Q: examples of changes that affect consistency and
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Q: S1: When an Other Matter paragraph is included to draw users' attention to a matter relevant to…
A: Solution: False, When an Other Matter paragraph is included to draw users' attention to a matter…
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A: Solution: True, The auditor's report on the group financial statements shall not refer to a…
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A:
Q: Which of the following statements are not true about auditors responsibilities? a) The financial…
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Q: When financial statements are presented in comparative form and another firm audited the prior…
A: Audit Report: An audit report refers to a written report issued by an auditor to express an opinion…
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A: A material uncertainity is a condition where there is a reasonable…
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A: Introduction: In an audit report, an auditor's opinion is conveyed. An initial portion of the audit…
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A: Generally Accepted Accounting principles: GAAP is issued by the Financial Accounting Standards…
Q: Directions: Please select the appropriate answer on the statement below; B - If the statement is…
A: First Reporting Standard is International Accounting Standards (IAS 1): Presentation of Financial…
Q: 1. Which of the following is ordinarily true of a modification of the audit report by adding an…
A: SOLUTION- EMPHASIS OF MATTER PARAGRAPH - A PARAGRAPH INCLUDED IN THE AUDITOR'S REPORT THAT REFERS TO…
Q: The standard compilation report includes which statement or phrase?(1) A compilation is…
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- S1: If a client fails to present to the external auditor a concrete plan or sufficient supporting documents to address any capital deficiency, the company should provide an emphasis paragraph indicating that it is no longer a going concern and should use a liquidation basis in the preparation of its financial statements. S2: The auditor's report should state clearly the opinion of the independent auditor on the fairness of presentation in conformity with the prescribed financial reporting framework for the company. S3: For an auditing firm, the certifying partner should sign his/her own signature and indicate that he/she is signing for the firm, the name of which is printed in the report. O S1 and S2 are true O S2 and S3 are true O All statements are true O All statements are falseThe accounting and auditing literature discusses several different types of accounting changes. For each of the changes listed below (a. through c.), indicate whether the auditor should add a paragraph to the audit report, assuming that the change had a material effect on the financial statements and was properly justified, accounted for, and disclosed. Assume that the organization is a U.S. non-public company. a. Change from one GAAP to another GAAP b. Change in accounting estimate not affected by a change in accounting principle c. Change in accounting estimate affected by a change in accounting principle d. Correction of an error c. Change from non-GAAP to GAAP (a special case of correction of an error)1. B) During the audit of LDF Co’s bad debt provision, the auditor discovered that £500,000 of costs included in the provision did not meet the criteria for inclusion based on the applicable accounting The management of LDF suggested that no adjustment is required as the provision is a matter of judgment and the current provision is deemed reasonable by the management. Requirement: Discuss the differences between the modified and unmodified audit reports. Discuss the above issue and describe the impact of this issue on the auditor’s report, if any, should this issue remain unresolved.
- Answer the following subquestion as a result of an audit: a. How much is the correct carrying value of the notes payable as of December 31, 2023? b. How much is the correct interest expense that Meekah should recognized in the December 31, 2023 statement of comprehensive income? c. How much of the note is reported in the non-current liability section of the December 31, 2023 statement of financial position?118-Since accounting information is used for decision making. As a result of financial manipulations, it is expected that the result might be unrealistic. Therefore, it is far necessary for the accounts department to show fair financial results which is only possible if a. Reputed audit firm is selected for audit b. A fair accountant is hired on this position c. A strong compliance with accounting standards d. None of the optionsWhen it is difficult to distinguish between a change of estimate and a change in accounting policy, then an entity should (a) Treat the entire change as a change in estimate with appropriate disclosure. (b) Apportion, on a reasonable basis, the relative amounts of change in estimate and the change in accounting policy and treat each one accordingly. (c) Treat the entire change as a change in accounting policy. (d) Since this change is a mixture of two types of changes, it is best if it is ignored in the year of the change; the entity should then wait for the following year to see how the change develops and then treat it accordingly.
- For each case, state the type of audit opinion which should be expressed and provide an explanation for your choice of audit opinion in each case Mirrabella Pty Ltd has completed the preparation of its financial statements for 2020/2021, but it has decided to exclude the Income Statement. The Chief Financial Officer (CFO) of Mirrabella Pty Ltd explains to you that the users of their financial statements find the Income statement confusing, too long and unnecessary because the Balance Sheet already has the essential information which shareholders require. Accordingly, the CFO has refused to have the Income Statement in the annual report for the year ending 30/06/21. Furthermore, the CFO has implied that Mirrabella Pty Ltd will be seeking to appoint a different auditor for the next audit. ads you to suspect there are likely to be serious operational challenges for BMP Ltd in the next twelve months.The accounting and auditing literature discusses several different types of accounting changes. For each of the changes listed below (a. through e.), indicate whether the auditor should add a paragraph to the audit report, assuming that the change had a material effect on the financial statements and was properly justified, accounted for, and disclosed. Assume that the organization is a U.S. nonpublic company. a. Change from one GAAP to another GAAP b. Change in accounting estimate not affected by a change in accounting principle c. Change in accounting estimate affected by a change in accounting principle d. Correction of an error e. Change from non-GAAP to GAAP (a special case of correction of an error)The accounting and auditing literature discusses several different types of accounting changes. For each of the changes listed below (a. through e.), indicate whether the auditor should add a paragraph to the audit report, assuming that the change had a material effect on the financial statements and was properly justified, accounted for, and disclosed. Assume that the organization is a U.S. nonpublic company. a. Change from one GAAP to another GAAP b. Change in accounting estimate not affected by a change in accounting principle c. Change in accounting estimate affected by a change in accounting principle d. Correction of an error e. Change from non-GAAP to GAAP (a special case of correction of an error) PLEASE ANWSER ONLY SECTION D & E THANK YOU!
- During the audit of LDF Co’s bad debt provision, the auditor discovered that £500,000 of costs included in the provision did not meet the criteria for inclusion based on the applicable accounting standards. The management of LDF suggested that no adjustment is required as the provision is a matter of judgement and the current provision is deemed reasonable by the management. Requirement: 1. Discuss the differences between the modified and unmodified audit reports. 2. Discuss the above issue and describe the impact of this issue on the auditor’s report, if any, should this issue remain unresolved.Which of the following is a major difference in auditors’ liability under the Securities Act of1933 and the Securities Exchange Act of 1934?a. The burden of proving reliance on misstated financial statements and the relationshipbetween these financial statements and the economic loss.b. The auditors’ required degree of professional care.c. Both of the above.d. Neither of the aboveWhich of the following statements relating to the role ofprofessional judgment in the financial reporting process is(are) true?a. Different accountants may evaluate similar situationsdifferently.b. The determination of which items should be disclosedin notes to fi nancial statements requires professionaljudgment.c. Once a complete list of generally accepted accountingprinciples is prepared, judgment by accountants will nolonger enter into the fi nancial reporting process.d. The possibility exists that professional judgment latermay prove to have been incorrect.