Mcq Question:

I Don't need explanation just give me answer thx

Negative assurance is permissible in:

Select one:

reports based on a performance audit of a government department

reports relating to the results of agreed-upon procedures to one or more specified elements, accounts or items of a financial report

reports based upon an audit of the interim financial report of a closely held business entity

reports based upon a review engagement

When an adverse opinion is expressed, the opinion paragraph should include a direct reference to:

Select one:

the paragraph outlining the auditor's responsibility, which discusses the basis for the opinion rendered

a separate qualification paragraph that discusses the basis for the opinion rendered

a footnote to the financial report that discusses the basis for the opinion

the consistency or lack of consistency in the application of accounting principles

Mango Ltd.'s directors voted immediately after the year-end of 30 June 2020 to triple its advertising budget for the coming year and authorised a change in advertising agencies. What is the effect of this event on the 30 June 2020 financial report?

Select one:

No disclosure or adjustment necessary

Disclosure in a footnote to the financial report.

Disclosure by means of supplemental, pro-forma financial information

Adjustment of the financial report

An auditor wishes to perform tests of controls on XYZ Ltd.'s payment disbursements procedures. If the control procedures leave no audit trail of documentary evidence, the auditor most likely will test the procedures by:

Select one:

confirmation and observation

observation and enquiry

analytical procedures and confirmation

enquiry and analytical procedures

An auditor is testing sales transactions. One step is to trace a sample of debit entries from the accounts receivable subsidiary ledger back to the supporting sales invoices. What would the auditor intend to establish by this step?

Select one:

All sales invoices have been properly posted to customer accounts

Debit entries in the accounts receivable subsidiary ledger are properly supported by sales invoices

All sales invoices have been recorded

Sales invoices represent bona fide sales

Matt Ltd is required to but does not wish to prepare and issue a statement of cash flows as part of its financial report. In these circumstances, the auditor's report should include:

Select one:

an unmodified opinion with a statement of cash flows prepared by the auditor included as part of the auditor's report

an unmodified opinion with an Emphasis of Matter section explaining that the company declined to present the required statement

a disclaimer of opinion with a separate explanatory paragraph stating why the company declined to present the required statement

an adverse opinion stating that the financial report, taken as whole, is not fairly presented because of the omission of the required statement

Which of the following procedures would an auditor ordinarily perform during the review of subsequent events?

Select one:

An analysis of related-party transactions for the discovery of possible irregularities

An enquiry of the client's solicitor concerning litigation

An investigation of material weaknesses in internal accounting control previously communicated to the client

A review of the cut-off bank statements for the period after the year-end.

While undertaking a review of the half-yearly financial report of Butterfly Ltd, a company listed on the Australian Securities Exchange, you as assurance provider become aware of a lack of adequate disclosure that is material and pervasive to the financial report and results in it being misleading. If management refuses to correct the financial report presentations, you should:

Select one:

issue an adverse opinion

issue an 'except for' opinion

disclose this departure from accounting standards in a separate paragraph of the report

express only limited assurance on the financial report presentations

When evaluating the risk of material misstatement with regards to defalcations involving receivables (a credit entry to accounts receivable for amounts not received), the auditor would expect an experienced bookkeeper to most likely debit which of the following accounts?

Select one:

Accounts payable

Cash

Miscellaneous income

Sales returns

While auditing at Butterfly Ltd and undertaking tests of controls which are related to controls built around their integrated sales and purchases system, which assertion would be of least interest to you as auditor?

Select one:

Rights and obligations

Occurrence

Accuracy

Completeness

Which of the following must accompany an unaudited financial report which is prepared by an auditor?

Select one:

None of the given answers.

Either a disclaimer of opinion or adverse opinion.

Only a disclaimer of opinion.

Either a disclaimer of opinion or a qualified opinion.

An auditor will usually trace the details of the test counts of inventory items selected from the factory floor while observing the inventory stocktake through to a final inventory schedule. This audit procedure is undertaken to provide evidence of which assertion(s)?

Select one:

Cut-off

Completeness

Existence

Accuracy, valuation and allocation

Which of the following best describes an auditor's report on a supplementary financial report prepared in accordance with a price-level basis of accounting that has substantial support?

Select one:

An unaudited report on a supplementary report.

A limited assurance report on a supplementary report.

An assurance report on a supplementary report.

A special purpose report on a supplementary report.

An auditor will ordinarily examine invoices from solicitors primarily in order to:

Select one:

assess the legal ramifications of litigation in progress

substantiate accruals

estimate the dollar amount of contingent liabilities

identify possible unasserted litigation, claims and assessments