Which one of the following opinion will be issued by the auditor, if the misstatement in the financial statements would not affect the decision of a financial statement user and if it is considered immaterial? Disclaimer Qualified Adverse Duestion 22 Unqualified

Q: Auditors are not responsible for accounting estimates with respect toa. Making the estimates.b.…

A: Select the accounting policies and accounting estimates is the responsibility of the management to .…

Q: ancial reporting framework on a single financial statement or one or more specific elements,…

A: An Auditor is an person who becomes an Auditor after getting professional accounting degree i.e…

Q: What category of audit report will be issued if the auditor concludes that the financial…

A: Given: The issue to the auditors if the unfair financial statements are concluded.

Q: Other matters to which the auditor may wish to refer in an Other Matter(s) paragraph but which are…

A: The Other Matter paragraph is the audit report is written to communicate all the necessary matters…

Q: When the financial statements are fairly stated but the auditor concludes there is substantial doubt…

A: Auditors report is defined as the formal outcome of audit conducted by internal or external…

Q: ervasive effects on the financial

A: Pervasive misstatements are misstatement in financial statements that affect the essence of…

Q: 27.  If the auditors disagree with management regarding an accounting principle used in the…

A: Audit is the process of checking and verifying the authenticity of financial statements and…

Q: which of the following in not related to standards of reporting Select one: a. The report shall…

A: Report is a statement that is prepared by the auditor of the financial information. It includes the…

Q: If the auditor concludes that financial statements are not free from material misstatements and the…

A: Auditing refers to the art of inspecting and investigating financial accounts of a company. It is…

Q: Which of the following statements is not true with respect to the auditors’ report on…

A: Internal Control: Internal control is a mechanism or procedure that the company implements so that…

Q: What factors should the auditor take into consideration before concluding that a financial statement…

A: Financial statements should give crucial information to any interested user of financial data so…

Q: Which of the following case, an audit opinion with unqualified Report with Modified Wording will be…

A: Unqualified report with modified wordings means with the view of auditor, the financial statement…

Q: If the auditor expresses an adverse or disclaimer of opinion on the complete set of…

A:

Q: Which of the following statements is not true with respect to the  auditors' report on internal…

A: An audit report is crucial in order to determine the reliability of the financial reports of an…

Q: 16. What is the purpose of information presented in notes to financial statements? a. To present…

A: Disclaimer:- Since you asked multiple question in one question, we will provide you the answer of…

Q: : When client-imposed restrictions significantly limit the scope of the audit, the auditor generally…

A: Solution: True, When client-imposed restrictions significantly limit the scope of the audit, the…

Q: How is the auditors’ standard (unmodified) report modified for qualified or adverse opinionsissued…

A: The auditors usually issue an unmodified only in case of disclosures and accounting policies…

Q: When the auditor identifies that a key control absent he/she would most probably: Select one: a.…

A: d.  Issue a qualified or disclaimer of opinion on internal controls over financial reporting.…

Q: If the financial statements have been prepared using the going concern basis of accounting but, in…

A: ISA 570- Going concern - The ISA deals with the auditor’s responsibilities relating to management’s…

Q: Which type of audit report specifies that financial statements do not present fairly the financial…

A: The audit is required to be conducted so as to examine the accuracy of the books of accounts,…

Q: Under what circumstances auditor may express an unqualified opinion? 1. The view presented by the…

A: Auditor's opinion refers to the report, which is issued to the management after a complete audit of…

Q: ment of materiality guides audit planning and testing   materiality is used to guide the validity…

A: To find the incorrect option as,

Q: In which of the following cases should an Unqualified Report with Explanatory Paragraph be issued?…

A: Auditing means the independent checking of company operation by outsider. Auditor is  qualified and…

Q: ned to afford a reasonable basis for the opinion regarding financial statements under audit.…

A: The auditor's responsibilities revolve around ensuring that financial statements are presented…

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…

Q: Disclaimer of opinion rendered by an independent auditor of financial statements stating that the…

A: Business organizations are required to conduct audits of their financial statements so as to know…

Q: What type of opinion is issued by the auditor on the financial statements when there is some…

A: There are 4 types  of  audit opinions  1.Unqualified opinion  2.Qualified opinion  3.Adverse opinion…

Q: For which of the following events would an auditor issue a report that does not make any reference…

A: An auditor is appointed to check the accuracy of the financial statement prepared by the company.

Q: 8. In which of the following situations would an auditor originally choose between expressing a…

A: Qualified opinion: A qualified opinion can be issued by the auditor in the following two cases:…

Q: Which of the following would not require an explanatorylemphasis-of-matter paragraph in the…

A: Auditor's Report: It is a report which contains independent opinion of an auditor regarding…

Q: . To express an opinion on financial statements, the auditor obtains reasonable assurance about…

A: Opinion of the auditor: To express an opinion on financial statements, the auditor obtains…

Q: {Auditing} 15. Find the nature of materiality if the client incorrectly selects and applies…

A: The nature of materiality refers to the fact that the information included in the financial…

Q: The issuance of a disclaimer of opinion generally indicates:     the auditors cannot form an…

A: A disclaimer of opinion by auditor indicates that auditor will not provide any opinion on the…

Q: : The auditor's report on the group financial statements shall not refer to a component auditor,…

A: Solution: True, The auditor's report on the group financial statements shall not refer to a…

Q: asarju for Sem III 202 General / BAAC4203 Auditing and Control-2 FINAL EXAM If the auditor concludes…

A: ‘’Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: 9. In which of the following types of reports do the auditors express negative assurance? Group of…

A: Negative assurance is the assurance which is provided by auditor in the absence of positive…

Q: Under which section of the audit report the matters that pose challenges to the auditor in obtaining…

A: The auditor's report is a report that contains the auditor's opinion on whether a company's…

Q: Which of the following statements regarding additional information that is included in a document…

A: Audited financial statement is the financial statement which has been audited by the qualified…

Q: Question 4 Respond to each 'of the following independent situations involving auditor reports. For…

A: Auditors need to form an opinion on the financial statement of the entity based on the conclusion…

Q: When financial statements are affected by a material departure from generally accepted accounting…

A: Generally Accepted Accounting principles: GAAP is  issued by the Financial Accounting Standards…

Q: Discuss various type  of opinion is issued by the auditorr if he or she is unable to determine the…

A: Introduction: The act of recognizing, validating, and continuing to study all financial forms and…

Q: Sufficient and appropriate evidence is the focus of the third field work standard. * O True O False…

A: Audit is referred as an examination of the different books of accounts through an auditor that…

Q: In the auditor's judgement, management's use of going concerm basis of accounting is appropriate,…

A: As per standards on auditing , If the adequate disclosure is not made in the financial statement…

Q: when the auditor discover a misstatement in the financial statement and this misstatement is…

A: The auditing will be conducted to find whether there are any errors or mistakes in the financial…

Q: 2) During the audit of a client you come to the conclusion that there is minimal likelihood that…

A: The auditor is appointed to form an opinion on the financial statement examined. The auditor is…

Loanable Funds Theory

The loanable funds theory is a neoclassical theory that determines the interest rate where the demand for loanable investments and supply of loanable funds intersect. To determine the interest rate, this theory employs linear regression and a demand curve. At the equilibrium point, demand for borrowings and demand for the issuance of borrowing funds are inextricably linked. This point of equilibrium should equalize demand and the supply of money available for borrowing.