1. Auditors may add an emphasis-of-matter paragraph that refers to a matter that is __________ presented or disclosed.

a. Incorrectly

b. Appropriately

c. Unfairly

d. Misleading

e. Wrongly

2. A going concern is to be evaluated for a period not to exceed __________ beyond the date of the financial statements.

a. One quarter

b. One month

c. One period

d. One day

e. One year

3. If substantial doubt about a going concern exists, an __________ paragraph is the most common resolution

a. Incorrect

b. Unqualified

c. Explanatory

d. Emphasis-of-matter

e. Inappropriate

4. An emphasis-of-matter paragraph always __________ the opinion paragraph.

a. Recedes

b. Replaces

c. Overlaps

d. Includes

e. Follows

5. Changes in accounting estimates __________ result in an explanatory paragraph

a. Always

b. Should

c. Do

d. Do not

e. Eventually

6. An emphasis of a matter paragraph always follows the __________ paragraph.

a. Introduction

b. First

c. Opinion

d. Second

e. Scope .

7. Auditors are __________ required to perform procedures specifically designed to test the going concern assumption.

a. Sometimes

b. Always

c. Rarely

d. Not

e. Generally

8. When items are identified that affect the going concern assumption, auditors must gather __________.

a. Intent

b. Evidence

c. Ideas

d. Funding

e. Interest

9. In addition to an emphasis of a matter paragraph, auditors could issue a(n) __________ in a going concern situation.

a. Weakness

b. Adverse opinion

c. Exception

d. Disclaimer

e. Audit report 1

0. A going concern evaluation should include evaluation of __________ from the balance sheet date.

a. One week

b. One year

c. One day

d. Two years

e. One month