Professional standards require that a report be issued whenever a CPA firm is assoc statements.

True

False

Auditing standards require that and audit report include the word independent in the reports title

True

False

The first paragraph in a standard, unqualified audit report is referred to as the scope paragraph.

True

False

The phase generally accepted auditing standards can be found in the opinion of a standard, unqualified report.

True

False

The audit report is normally dated as the last day of fieldwork.

True

False

An adverse opinion is used when there has been a highly material restriction caused by the client.

True

False

When an auditor issues a qualified report, he or she must use the term except for in the opinion paragraph.

True

False

When an auditor discovers a highly material GAAP violation in the financial statements that the client refuses to correct, the auditor should issue a disclaimer of opinion.

True

False

When there is a scope limitation in an audit, the audit report will be unqualified, qualified scope and opinion, or adverse, depending on the materiality of the scope limitation.

True

False

When an auditor decides that adherence to generally accepted accounting principles would result in misleading financial statements, the auditor should issue an unqualified audit report with an explanatory paragraph which explains the departure from GAAP and why generally accepted accounting principles would have resulted in misleading financial statements.

True

False

If an audit client has not consistently observed accounting principles if the current period in relation to the preceding period, the auditor should normally issue an unqualified report with an explanatory paragraph which explains the nature of the change.

True

False

Changes in reporting entities, such as the inclusion of an additional company in combined financial statements, affect comparability but not consistency, and therefore do not require and explanatory paragraph in the audit report.

True

False