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To verify shares owned by the audit client in a public company, an auditor should a. rely on the client's internal controls b. confirm the shares owned are held by a custodian c. look at the market price per share at the balance sheet date d. confirm the number of shares issued Which of the following is an effective audit procedure for verifying dividends earned on investments in equity securities? a. Trace deposits of dividend checks to the cash receipts books b. Reconcile received with published dividend records c. Compare the amount received with prior dividend received d. Foot the totals in the general ledger An Auditor would verify the interest earned on bond investments by a. Vouching the receipt and and deposit of interest checks b. confirming the bond interest rate with the issuer of the bonds. c. recomputing the interest earned d. testing the controls over cash receipts A departure from GAAP requires the auditor to express an option that is a. unqualified with no mention of the departure from GAAP b. unqualified but describe the departure in a separate paragraph c. qualified and describe the departure in a separate paragraph d. either qualified or adverse and describe the departure in a separate paragraph A company changed from the straight-line to the double declining balance method of depreciation for all newly acquired assets. This change is disclosed in the notes to the financial statements, so the auditor will issue a. a report with an except for qualified opinion b. a report with an explanatory paragraph c. a report with an unqualified opinion d. a report with a consistency modification An auditor concludes that there is substantial doubt about a client's ability to continue as a going concern. The auditor's report should Include an explanatory Paragraph following the Opinion paragraph specifically use the words "going concern" specifically use the words "Substantial doubt" Yes Yes No Yes No Yes No Yes Yes Yes Yes Yes