1. An emphasis-of-matter paragraph refers to when an auditor ________.

A) issues a disclaimer of opinion due to a scope limitation

B) issues an unmodified opinion but may include an additional paragraph in the report to draw attention to important information

C) makes inquiries of the legal auditor relating to prior audit opinions issues

D) makes inquiries of the prior auditor relating to prior audit opinions issues

2. When is a disclaimer of opinion issued?

A) When a scope limitation is material and pervasive

B) When scope limitation is eliminated by alternative procedures

C) When a scope limitation is material but not pervasive

D) When a misstatement is material and pervasive

3. Material misstatements discovered during the audit ________.

A) are discussed with management, and usually management makes the recommended adjustment to correct the misstatement

B) are discussed with the client's legal counsel only, and usually they make the recommended adjustment to correct the misstatement

C) are a basis for the auditor to immediately issue a scope limitation

D) require a note disclosure in the financial statements

4. The date of the auditor's report should be the ________.

A) date the audit report is sent to the SEC for approval

B) same date as the financial statement date

C) date the auditor receives the audit report from the internal auditors

D) date of the completion of fieldwork