Listen What is the difference between an Unqualified Audit Opinion with an Emphasis of Matter(s) Paragraph and an Unqualified Audit Opinion with an Other Matter(s) Paragraph? (2 marks)

Question 31 options:

One discusses new information and the other discusses future subsequent events.

One discusses information already mentioned in the notes to the financial statements and the other discusses new information the auditor feels is important to the user.

One discusses the tone at the top of the organization and the other emphasizes the role of the auditor during the audit process

One discusses new information not mentioned in the notes to the financial statements and the other discusses any deficiencies in the company's internal controls

Question 32 (2 points)

Listen During your investigation of subsequent events you discovered that a large accounts receivable customer went bankrupt shortly after your client's year-end. What criteria would you use to determine whether you should adjust the year-end balance sheet for the write-off or not? (2 marks)

Question 32 options:

Whether the poor financial condition of the company was know in the audit year or only known after the year-end

Management's attitude when you mention an adjustment may be required

Whether the customer was a long term one or new customer

Whether the customer is a related company or not

Question 33 (2 points)

Listen What audit report "opinion" would the auditor provide in the following situation?

(2 marks)

a. During your examination of ABC Company Ltd., you conclude there is a possibility that inventory is materially overstated due to error or fraud. The client refuses to allow you to expand the scope of your examination sufficiently to verify whether the balance is actually misstated. Your concern has lead you to think about resigning.

Question 33 options:

Unqualified

Qualified - GAAP Departure

Adverse

Disclaimer of opinion