27 When there has been a change in accounting principles, but the effect of the change on 27) e comparability of the financial statements is not material, the auditors should A) explicitly concur that the change is prefered B) refer to the change in the opinion paragraph C) refer to the change in an emphasis-of-matter paragraph. D) not refer to consistency in the report. 28) In which of the following circumstances would auditors be most likely to express an 28) adverse opinion? A) The financial statements are not in accordance with generally accepted accounting B) The chief executive officer refuses to provide the auditors access to minutes of C) Tests of controls show that the entity's internal control is so ineffective that it D) Information comes to the audifors attention that raises substantial doubt about the principles regarding the capitalization of leases. board of directors' meetings cannot be relied upon. ty's ability to continue as a going concern. 29) 29) In which of the following circumstances would auditors most likely add an s-of-matter paragraph to the standard (unmodified) report without modifying A) The auditors are asked to report on the balance sheet, but not on the other basic the opinion on the entity's financial statements? financial statements. B) There is substantial doubt about the entity's ability to continue as a going concern. C) Certain transactions cannot be tested because of management's records retention policy D) Management's estimates of the effects of future events on the entity's financial condition, results of operations, and cash flows are unreasonable. 30) When component auditors are involved in the audit of group financial statements, the 30) group auditors are required to A) identify the extent of component auditors' involvement if they choose not to rely on the component auditors' work. B) disclaim an opinion on the portion of the financial statements examined by the component auditors. liability for the component auditors' work. in deciding how to utilize their work. C) identify the component auditors by name in their report to appropriate limit their D) consider the independence and professional reputation of the component auditors E/FALSE. Write 'T' if the statement is true and 'F' if the statement is false. 31) In order to check for unrecorded loans in the finance and investment cycle, auditors should search for large cash transactions in the cash receipts journal