ANSWERS ONLY. BE SURE ALL ARE CORRECT TO BE RATED.

Auditor's Responsibilities for the Audit of the F/S

41. The auditor's responsibility section of the auditor's report includes the following, except:

a. The auditor's objectives to obtain limited assurance.

b. An explanation that misstatements can arise from fraud or error.

c. A description of the meaning of materiality.

d. An explain that the auditor exercises professional judgement and maintains professional skepticism throughout the audit.

Other Reporting Responsibilities

42. Statement 1: The auditor's report shall name the location in the country or jurisdiction where the auditor practices.

Statement 2: When the auditor addresses other reporting responsibilities in the auditor's report on the financial statements that are in addition to the auditor's responsibility under PSAs, these other reporting responsibilities shall be addressed in a separate section in the auditor's report. This separate section shall be sub-titled "Report on Other Legal and Regulatory Requirements", unless these other reporting responsibilities address the same topics as those presented under the reporting responsibilities required by the PSAs in which case the other reporting responsibilities may be presented in the same section as the related report elements required by the PSAs as long as the wording of the auditor's report clearly differentiates the other reporting responsibilities from those under the PSAs.

a. True, True

b. False, True

c. False, False

d. True, False

43. When is the case that supplementary information is covered by the auditor's opinion?

a. The supplementary information is integral part of the financial statements and is presented as a supplementary schedule.

b. The supplementary information is integral part of the financial statements and is presented as an additional note disclosure.

c. The supplementary information is not integral part of the financial statements but is presented as an additional note disclosure.

d. Both (a) and (b).

44. Which of the following is the least likely way to report on supplementary information that is considered integral part of financial statements?

a. In the auditor's report as part of "Report on the Audit of Financial Statements".

b. In the auditor's report as part of "Report on the Audit of Financial Statements" if addressing the same topics as those presented under the reporting responsibilities required by PSAs and the wording of the auditor's report clearly differentiates the other reporting responsibilities from those under the PSAs.

c. In the auditor's report as part of "Report on Other Legal and Regulatory Requirements".

d. As a separate independent auditor's report on supplementary information.

45. Which statement is correct concerning required supplementary information not considered integral part of the financial statements?

a. The auditor has no responsibility for required supplementary information as long as it is outside the basic financial statements.

b. The auditor's only responsibility for required supplementary information is to determine that such information has not been omitted.

c. The auditor should apply certain limited procedures to the required supplementary information, and report deficiencies in, or omissions of, such information.

d. The auditor should apply tests of details of transactions and balances to the required supplementary information, and report any material misstatements in such information.

46. If management chooses to place supplementary information that is not considered integral part of the financial statements in footnotes to the financial statements, this information should be clearly marked as

a. Unaudited.

b. Supplementary information required by the SEC.

c. Disclosures required by the SEC.

d. Audited financial data required by GAAP.

47. If management declines to present supplementary information that is not considered integral part of the financial statements required by the Securities and Exchange Commission (SEC), the auditor should issue a(n)

a. Adverse opinion.

b. Qualified opinion with an other-matter paragraph.

c. Unmodified opinion.

d. Unmodified opinion with an additional other-matter paragraph.

Name of Partner, Signature, Address and Date

48. When financial statements are audited by an accounting firm, the partner-in-charge of engagement ordinarily signs in the name of the firm because:

a. The partner-in-charge of engagement should be relieved of any responsibility regarding the opinion issued.

b. It is required by reporting standards.

c. The firm assumes responsibility for the audit.

d. The opinion becomes more credible if signed in name of the firm.

49. The following statements relate to the date of the auditor's report. Which is false?

a. The auditor should date the report as of the completion date of the audit

b. The date of the auditor's report should not be earlier than the date on which the financial statements are signed or approved by management

c. The date of the auditor's report should not be later than the date on which the financial statements are signed or approved by management.

d. The date of the auditor's report should always be later than the date of the financial statements (i.e., the balance sheet date).

50. The audit report date is important to users because it indicates the

a. Last day of the fiscal period.

b. Last day of the auditor's responsibility for the review of significant events that occurred after the date of the financial statements.

c. Date on which the financial statements were filed with the SEC.

d. Last day on which users may institute a lawsuit either client or auditor.