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EBK AUDITING AND ASSURANCE SERVICES
16th Edition
ISBN: 9780134067117
Author: Hogan
Publisher: VST
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Question
Chapter 3, Problem 21.1MCQ
To determine
Identify the option under which the auditor must issue a report for the situation given.
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Students have asked these similar questions
An entity changed from the straight-line method to the declining-balance methodof depreciation for all newly acquired assets. This change has no material effect onthe current year’s financial statements but is reasonably certain to have a substantialeffect in later years. If the change is disclosed in the notes to the financial statements,the auditor should issue a report with a(n)(1) qualified opinion.(2) unqualified opinion with explanatory paragraph.(3) unqualified opinion.(4) qualified opinion with explanatory paragraph regarding consistency.
In a client currently using straight-line method for all depreciable assets acquires a new class of depreciable assets to initiate a new product line and begins to depreciate these assets on an accelerated basis, the auditor should
A. Add a separate explanatory paragraph to the reportB. Express an adverse opinionC. Express the opinion subject to the effect of new depreciation methodD. Express thee opinion with no modification for the accounting change
8. An auditor should be aware of subsequent event that provide evidence concerning conditions that did not exist at year end but arose after year end. These events may be important to the auditor because they may:
a. Have been recorded based on preliminary accounting estimates.
b. Require adjustments to the financial statements as of the year end.
c. Have been recorded based on year-end tests for asset obsolescence.
d. Require disclosure to keep the financial statement from being misleading.
9. Analytical procedures used in planning an audit should focus on:
a. Identifying material weaknesses in internal control.
b. Enhancing the auditor’s understanding of the client’s business.
c. Testing individual account balances that depend on accounting estimates.
d. Evaluating the adequacy of evidence gathered concerning unusual balances.
Chapter 3 Solutions
EBK AUDITING AND ASSURANCE SERVICES
Ch. 3 - Prob. 1RQCh. 3 - Prob. 2RQCh. 3 - Prob. 3RQCh. 3 - Prob. 4RQCh. 3 - Prob. 5RQCh. 3 - Prob. 6RQCh. 3 - Prob. 7RQCh. 3 - Prob. 8RQCh. 3 - Prob. 9RQCh. 3 - Prob. 10RQ
Ch. 3 - Prob. 11RQCh. 3 - Prob. 12RQCh. 3 - Prob. 13RQCh. 3 - Distinguish between a report qualified due to a...Ch. 3 - Prob. 15RQCh. 3 - Prob. 16RQCh. 3 - Prob. 17RQCh. 3 - Prob. 18RQCh. 3 - Prob. 19RQCh. 3 - Prob. 20.1MCQCh. 3 - Prob. 20.2MCQCh. 3 - Prob. 20.3MCQCh. 3 - Prob. 21.1MCQCh. 3 - Prob. 21.2MCQCh. 3 - Prob. 21.3MCQCh. 3 - Prob. 22.1MCQCh. 3 - Prob. 22.2MCQCh. 3 - Prob. 22.3MCQCh. 3 - Prob. 23DQPCh. 3 - Prob. 24DQPCh. 3 - Prob. 25DQPCh. 3 - Prob. 26DQPCh. 3 - Prob. 27DQPCh. 3 - Prob. 28DQPCh. 3 - Prob. 29DQP
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