A Share EL o com Abbcode Abbcode ADA Aa BbCcDc AabCcDde AaBbc anacoste Normal Ne forcing Heading 2 Title D. A title with the word "independent." Sube Styles Pane Dictate 12. When an auditor of a nonpublic company has concluded there is substantial doubt about an entity's ability to continue as a going concern for a reasonable period of time beyond the date the financial statements will be released (1/26/X2), the auditor's responsibility includes: Preparing prospective financial information to verify whether management's plans can be effectively implemented. B. Projecting conditions and events from one year prior to this year's date (12/31/XD) to 12/31/X1. C. Issuing an adverse or negative assurance opinion, depending upon materiality, due to the possible effects on the financial statements. D. Considering the adequacy of disclosure about the entity's possible inability to continue as a going concern. 13 A B. C D. A basis for a modification paragraph in the audit of the financial statements of a nonpublic company Is only included with qualified, adverse, or disclaimers of opinion is presented only in audit reports with unmodified opinions Has a section title: Emphasis-of-Matter Must be included in all nonpublic company audit reports. 14. Morgan, CPA, is the group auditor for a multinational corporation. Another CPA has examined and reported on the financial statements of a significant subsidiary of the corporation. Morgan is satisfied with the independence and professional reputation of the component auditor, as well as the quality of the component auditor's audit. With respect to Morgan's report on the consolidated financial statements, taken as a whole, Morgan: A Must not refer to the audit of the component auditor B. Must refer to the audit of the component auditor. . May refer to the audit of the component auditor. D. May refer to the audit of the component auditor, in which case Morgan must include in the audit report on the consolidated financial statements a qualified opinion with respect to the audit of the component auditor, 15. When an auditor does not confirm material accounts receivable, but is satisfied by the application of alternative auditing procedures, she normally should: A. Issue an unmodified opinion, but disclose elsewhere in the report this departure from a customary procedure. B. Issue an unmodified opinion with no reference to this omission c Issue a qualified opinion or a disclaimer, depending on the materiality of the receivables. D. Issue an adverse opinion. 16. A. . c. D. When financial statements are affected by a material departure from generally accepted accounting principles, the auditors should: Issue an unmodified opinion with a basis for modification paragraph. Withdraw from the engagement. Issue an except for qualification or an adverse opinion Issue an except for qualification or a disclaimer of opinion Which of the following will result in emphasis of matter as to consistency in a nonpublic company auditor's report, regardless of whether the item is fully disclosed in the financial statements? A A change in accounting estimate. B. A change from an unacceptable accounting principle to a generally accepted one. . Correction of an immaterial error not involving a change in accounting principle. D. A change in classification. United States Focus
