A CPA should not express negative or limited assurance in a standard 11. A. Review report on financial statements of a nonpublic entity. B. Comfort letter on financial information included in a registration statement of a public entity. C. Compilation report on financial statements of a nonpublic entity. D. Review report on interim financial statements of a public entity. An auditor is engaged to report on selected financial data that are included in a client-prepared document containing audited financial statements. Under these circumstances, the report on the selected data should 17. A. Indicate that the data are not fairly stated in all material respects. B. Be limited to data derived from the audited financial statements. C. State that the presentation is a comprehensive basis of accounting other than GAAP. D. Be distributed only to senior management and the board of directors. When a CPA reports on audited financial statements prepared on the cash receipts and disbursements basis of accounting, the report should 21. A. State that the basis of presentation is a comprehensive basis of accounting (OCBOA) other than GAAP. B. Refer to the note in the financial statements that describes managements responsibility for the financial statements. C. Explain why this basis of accounting is more useful for the readers of this entitys financial statements than GAAP. D. Include a separate explanatory paragraph that discusses the justification for, and the CPAs concurrence with, the departure from GAAP. The AICPA Code of Professional Conduct requires compliance with accounting principles promulgated by the body designated by the AICPA Council to establish such principles. The pronouncements considered officially established accounting principles include all of the following except 23. A. APB Opinions. B. Interpretations issued by the FASB. C. AICPA Issues Papers. D. AICPA Accounting Research Bulletins If the auditor obtains satisfaction with respect to the accounts receivable balance by alternative procedures because it is impracticable to confirm accounts receivable, the auditors report should be unqualified and could be expected to 43. A. Refer to a footnote that discloses the alternative procedures. B. Disclose in the opinion paragraph that confirmation of accounts receivable was impracticable. C. Disclose that alternative procedures were used because of a client-imposed scope limitation. D. Not mention the alternative procedures. Trotman, Inc., a manufacturing company, has engaged a CPA to audit its financial statements for the year ended June 30, year 2. The CPA observed the physical inventory count at June 30, year 2, but no physical inventory had been taken at June 30, year 1. The CPA has not been able to become satisfied as to the value of the inventory at June 30, year 1. Assuming that the financial statements are fairly presented in all other material respects, the CPA should 45. A. Express an unqualified opinion on the financial statements taken as a whole; no mention of the scope limitation is necessary. B. Disclaim an opinion on the statements of income, retained earnings, and cash flows but express an unqualified opinion on the balance sheet. C. Express an unqualified opinion on the financial statements taken as a whole but clearly indicate in a separate paragraph of the report the limitations on the work. D. Disclaim an opinion on the statements of income and retained earnings but express an unqualified opinion on the balance sheet and the statement of cash flows