Multiple Choice Questions The following questions concern unqualified audit reports. Choose the best response. a. Which of
Question:
The following questions concern unqualified audit reports. Choose the best response.
a. Which of the following statements about a combined report on the financial statements and internal control over financial reporting is correct?
(1) The auditor's opinion on internal control is for the same period of time as the opinion on the financial statements.
(2) The report includes additional paragraphs for the definition and limitations of internal control.
(3) The introductory, scope, and opinion paragraphs are unchanged from a report for an audit of the financial statements only.
(4) GAAP is the framework used to evaluate internal control.
b. The date of the CPA's opinion on the financial statements of the client should be the date of the
(1) Closing of the client's books.
(2) Finalization of the terms of the audit engagement.
(3) Completion of all important audit procedures.
(4) Submission of the report to the client.
c. If a principal auditor decides to refer in his or her report to the audit of another auditor, he or she is required to disclose the
(1) Name of the other auditor.
(2) Nature of the inquiry into the other auditor's professional standing and extent of the review of the other auditor's work.
(3) Portion of the financial statements audited by the other auditor.
(4) Reasons for being unwilling to assume responsibility for the other auditor's work.
Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... GAAP
Generally Accepted Accounting Principles (GAAP) is the accounting standard adopted by the U.S. Securities and Exchange Commission (SEC). While the SEC previously stated that it intends to move from U.S. GAAP to the International Financial Reporting Standards (IFRS), the...
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Auditing and Assurance services an integrated approach
ISBN: 978-0132575959
14th Edition
Authors: Alvin a. arens, Randal j. elder, Mark s. Beasley
Question Posted: