All Matches
Solution Library
Expert Answer
Textbooks
Search Textbook questions, tutors and Books
Oops, something went wrong!
Change your search query and then try again
Toggle navigation
FREE Trial
S
Books
FREE
Tutors
Study Help
Expert Questions
Accounting
General Management
Mathematics
Finance
Organizational Behaviour
Law
Physics
Operating System
Management Leadership
Sociology
Programming
Marketing
Database
Computer Network
Economics
Textbooks Solutions
Accounting
Managerial Accounting
Management Leadership
Cost Accounting
Statistics
Business Law
Corporate Finance
Finance
Economics
Auditing
Ask a Question
Search
Search
Sign In
Register
study help
business
auditing international approach
Questions and Answers of
Auditing International Approach
What reporting responsibility does an auditor have for prior-year financial statements presented with current-year audited statements if (1) he or she audited the prior year, (2) the prior year was
Distinguish between a reissued and an updated audit report.
What types of reports may a U.S. auditor issue on financial statements prepared in conformity with accounting principles generally accepted in another country that are for use only outside the United
What is the auditor's responsibility for information that is supplementary to the financial statements but required by the FASB or GASB? How does the auditor report on such information?
What is the auditor's responsibility for other information in the text portion of annual reports and other documents containing audited financial statements?
What actions should an auditor take if a material error is found in the financial statements after delivery of his or her audit report?
The standard audit report includes all of the following except a (an)a. Opinion paragraph.b. Scope paragraph.c. Explanatory paragraph.d. Opening paragraph.
The auditor's report may be addressed to any of the following except the client'sa. Stockholders.b. Board of directors.c. Chief executive officer.d. Partners.
In the opening paragraph of the standard audit report, auditors acknowledge their responsibility toa. Conduct their audit in accordance with generally accepted auditing standards.b. Evaluate the
The existence of audit risk is recognized by the statement in the auditor's standard report that thea. Auditor is responsible for expressing an opinion on the financial statements, which are the
Several sources of GAAP consulted by an auditor are in conflict as to the application of an accounting principle. Which of the following should the auditor consider the most authoritative?a. FASB
The auditor's standard report should be titled, and the title should include the worda. Standard.c. Independent.b. Opinion.d. Audit.
The standard audit report explains that an audit includes all of the following excepta. Examining support for the amounts and disclosures in the financial statements.b. Evaluating internal control.c.
An auditor issued an audit report that was dual dated for a subsequent event occurring after the completion of fieldwork but before issuance of the auditor's report. The auditor's responsibility for
An auditor has been asked to report on the balance sheet of Jane Company but not on the other basic financial statements. The auditor will have access to all information underlying the basic
When unaudited financial statements of a nonpublic entity are presented in comparative form with audited financial statements in the subsequent year, the unaudited financial statements should be
Comparative financial statements include the financial statements of the prior year that were audited by a predecessor auditor whose report is not presented. If the predecessor's report was
Before reporting on the financial statements of a U.S. entity that have been prepared in conformity with another country's accounting principles, an auditor practicing in the U.S. shoulda. Understand
What is an auditor's responsibility for supplementary information that is outside the basic financial statements, but required by the FASBa. The auditor has no responsibility for required
Which of the following representations does an auditor make explicitly and which implicitly when issuing a standard report? Conformity with GAAP a. Explicitly Adequacy of disclosure Explicitly b.
Which paragraphs of an auditor's standard report on financial statements should refer to generally accepted auditing standards (GAAS) and generally accepted accounting principles (GAAP) ? GAAS GAAP
When audited financial statements are presented in a client's document containing other information, the auditor shoulda. Perform inquiry and analytical procedures to ascertain whether the other
Which of the following events occurring after the issuance of an auditor's report most likely would cause the auditor to make further inquiries about the previously issued financial statements?a. A
When a predecessor auditor reissues the report on the prior period's financial statements at the request of the former client, the predecessor auditor shoulda. Indicate the introductory paragraph of
The auditor's standard report states that the financial statements are presented fairlya. With reasonable assurance.b. Without significant error.c. In all material respects.d. On a consistent basis.
Perry \& Price audited Bond's consolidated financial statements for the years ended December 31, 19X4 and 19X3. These financial statements are being presented on a comparative basis and an
You were recently appointed to a committee formed by the state CPA society to investigate possible substandard reporting practices. The following report was submitted to the committee, and, as the
A number of years ago a large public accounting firm used a form of the opinion paragraph shown below.In our opinion, the financial statements referred to above present fairly (in all material
On completion of fieldwork on September 23, 19X5, the following standard report was rendered by Timothy Ross to the directors of The Rancho Corporation.{Report of Independent Auditors}To the
Richard Adkerson, CPA, was reviewing with the president of Central Pond Shipping Com pany the standard audit report he intended to issue to this new client. The president had the following comments
Your client, Echo Software Systems, recently changed the wording of its sales contracts to permit its customers to receive software upgrades at no charge if its competitors upgrade their products.
You have been engaged to audit the financial statements of Gridley Corporation for the year ended December 31, 19X7. You completed the work in the client's office on February 22, 19X8 and returned
The following audit report contains departures from the standard wording. Identify the word, phrase, or omission that departs from the standard wording and state why the word, phrase, or omission
The management of Onbeach Supply Company desires to include four years' financial statements in this year's annual report. R. Vaughn, CPA, has audited the financial statements of the current and
The following auditor's report was drafted by a staff accountant of Jones \& Jones, CPAs, at the completion of the audit engagement on the financial statements of Adams Mining, Inc., for the year
In the current year the operating revenue of State Mountain Gas Company declined to \(\$ 1.7\) million from \(\$ 2.2\) million in the prior year. Owing to an extraordinary item, however, net income
For the year ended December 31, 19X8, Friday \& Company, CPAs (Friday), audited the financial statements of Johnson Company and expressed an unqualified opinion on the balance sheet only. Friday did
The fieldwork on Triple Steel Corporation has been completed. You were responsible for preparing the preliminary draft of the financial statements and auditors' report. You had the draft statements
Before the present form of the standard audit report was adopted, the following form was used:We have examined the balance sheet of \(\mathrm{X}\) Company as of December 31, 19X7, and the related
List the modifications of the standard audit report that normally do not result in a qualification, a disclaimer, or an adverse opinion.
When more than one auditor is involved in an audit of a company's financial statements, what two decisions about reporting must the principal auditor make?
What disclosure is made in the principal auditors' report if they decide to assume responsibility for other auditors' work? If they decide not to assume responsibility for other auditors' work?
Give three examples of matters that might be emphasized in an explanatory paragraph of the audit report.
Under what conditions should the phrase "with the foregoing explanation" be used in the opinion paragraph to refer to a matter emphasized in an explanatory paragraph?
Under what condition may an auditor issue an unqualified opinion on financial statements containing a departure from an accounting principle published by a body designated by the AICPA Council to
What modification is made to an auditor's report if accounting principles are not applied consistently?
List the factors that affect comparability of financial statements between years and result in a modification of the standard auditor's report.
List the factors that affect comparability of financial statements between years but would normally not result in a modification of the standard auditor's report.
List two circumstances that may result in a qualification, a disclaimer, or an adverse opinion.
Explain the meaning and use of the "except for" qualification.
Where should a qualifying phrase be placed if the auditor intends to qualify all of the basic financial statements?
What is the purpose of a disclaimer of opinion and when is it used?
Under what condition would an auditor issue a disclaimer of opinion rather than an "except for" qualification?
What is a piecemeal opinion, and under what conditions is it appropriate for the auditor to use it?
What does an adverse opinion state and when is it used?
How does an auditor decide whether to use an "except for" qualification or an adverse opinion?
List three reasons for limitations on the scope of an auditor's work.
Discuss the forms an auditor's report may take as the result of a scope limitation.
How is the scope paragraph of an auditor's report modified if the auditor's scope has been limited so that a qualification is required? A disclaimer is required?
Why should a scope limitation not be discussed in a footnote?
What forms of audit report are required to describe departures from generally accepted accounting principles and when is each used?
Why are qualifications and adverse opinions because of inadequate disclosure rare in practice?
A principal auditor decides not to refer to the audit of another CPA who audited a subsidiary of the principal auditor's client. After making inquiries about the other CPA's professional reputation
In which of the following situations would an auditor ordinarily issue an unqualified audit opinion without an explanatory paragraph?a. The auditor wishes to emphasize that the entity had significant
An auditor includes a separate paragraph in an otherwise unmodified report to emphasize that the entity being reported on had significant transactions with related parties. The inclusion of this
Eagle Company's financial statements contain a departure from generally accepted accounting principles because, due to unusual circumstances, the statements would otherwise be misleading. The auditor
When an entity changes its method of accounting for income taxes, which has a material effect on comparability, the auditor should refer to the change in an explanatory paragraph added to the
Miller Company uses the first-in, first-out method of costing for its international subsidiary's inventory and the last-in, first-out method of costing for its domestic inventory. Under these
An auditor concludes that there is substantial doubt about an entity's ability to continue as a going concern for a reasonable period of time. If the entity's disclosures concerning this matter are
An auditor who qualifies an opinion because of an insufficiency of evidential matter should describe the limitation in an explanatory paragraph. The auditor should also refer to the limitation in the
Restrictions imposed by a client prohibit the observation of physical inventories, which account for 35 percent of all assets. Alternative audit procedures cannot be applied, although the auditor was
Park, CPA, was engaged to audit the financial statements of Tech Co., a new client, for the year ended December 31, 19X3. Park obtained sufficient audit evidence for all of Tech's financial statement
A limitation on the scope of an audit sufficient to preclude an unqualified opinion will usually result when managementa. Is unable to obtain audited financial statements supporting the entity's
Green, CPA, was engaged to audit the financial statements of Essex Co. after its fiscal year had ended. The timing of Green's appointment as auditor and the start of field work made confirmation of
If a publicly held company issues financial statements that purport to present its financial position and results of operations but omits the statement of cash flows, the auditor ordinarily will
When an auditor qualifies an opinion because of inadequate disclosure, the auditor should describe the nature of the omission in a separate explanatory paragraph and modify the Introductory paragraph
An auditor's report that refers to the use of an accounting principle at variance with generally accepted accounting principles contains the words, "In our opinion, with the foregoing explanation,
Items a through \(\mathrm{h}\) present various independent factual situations an auditor might encounter in conducting an audit. List A represents the types of opinions the auditor ordinarily would
In which of the following circumstances would an auditor be most likely to express an adverse opinion?a. Information comes to the auditor's attention that raises substantial doubt about the entity's
The auditors' report below was drafted by Moore, a staff accountant of Tyler \& Tyler, CPAs, at the completion of the audit of the financial statements of Park Publishing Co., Inc., for the year
You are the auditor of X Company, and during your audit for the year ended September 30, 19X7, you note that approximately 76 percent of the company's sales were to one customer. In the prior year,
Y Company has never been audited and is to be acquired by one of your present clients and combined on a pooling-of-interest basis. Your client includes ten years of financial statements in its annual
In connection with your audit of Z Company for the year ended December 31, 19XX, you find that as a result of an improper cutoff of inventory shipments at the end of the year, approximately \(\$
You have been engaged to audit W Company, a new company formed to explore for oil and gas. During the year, W Company acquired several large undeveloped lease holdings for \(\$ 1\) million and
During the current year, your client, U Company, acquired B Company in a business combination accounted for as a pooling-of-interest. B Company previously had reported on a fiscal year ending on June
As a normal procedure in your audits, you request management of your clients to furnish you a management representation letter including, among other things, representations that the financial
During 19X7, R Company, your client, changed its method, effective January 1, 19X7, of computing inventory cost from the average cost method to the last-in, first-out method. This change had the
You recently were engaged to audit the financial statements of P Company, a company that previously has not been audited. During your work, you learn that three years ago a serious fire destroyed
The auditor's report below was drafted by Miller, a staff accountant of Pell \& Pell, CPAs, at the completion of the audit of the consolidated financial statements of Bond Co. for the year ended July
The partner in charge of the audit of Weishar Inc. began to draft the audit report for the year ended June 30, 19X2. She completed the first paragraph, which is shown below, before being called to
The following circumstances affect the comparability of financial statements between periods. The effect is material unless otherwise indicated. For each circumstance, state whether the auditor's
What is the purpose of tests of controls?
Describe the four procedures that can be used in conducting tests of controls.
Why are some tests of controls performed during the interim period?
What four factors should the auditor consider in deciding what evidence, if any, needs to be obtained during the period from the interim date to the balance sheet date?
Sampling is more likely to be used for certain types of tests of controls. What types are these?
For what types of procedures would sampling be appropriate?
For purposes of tests of controls, what is a deviation?
Give three examples of a sampling unit.
What is the difference between block sampling and haphazard sampling?
Showing 900 - 1000
of 2249
First
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
Last