QUESTION 3 2.5 points Save Answer In which of the following circumstances would auditors most likely add an emphasis-of-matter paragraph to the standard (unmodifled) report without modifying the opinion on the entity's financial statements? O The auditors are asked to report on the balance sheet, but not on the other basic financial statements. There is substantial doubt about the entity's ability to continue as a going concern. O Management's estimates of the effects of future events on the entity's financial condition, results of operations, and cash flows are unreasonable. O Certain transactions cannot be tested because of management's records retention policy QUESTION 4 25 points Save Answer Jones was engaged to examine the financial statements of Gamma Corporation for the year ended June 30. Having completed an examination of the investment securities, which of the following is the best method of verifying the accuracy of recorded dividend income? O Tracing recorded dividend income to cash receipts records and validated deposit slips OPerforming analytical procedures and statistical sampling. OComparing recorded dividends with amounts appearing on federal information Form 1099. O Comparing recorded dividends with a standard financial reporting service's record of dividends QUESTIONS 2.5 points Save Answer Duning an audit of an entity's stockholders' equity accounts, the auditor determines whether there are restrictions on retained earnings resulting from loans, agreements, or state law. This audit procedure most likely is intended to verify the ASB presentation and disclosure assertion of O completeness. Orights and obligations. understandability QUESTION 6 25 points Save Answer A client has a large and active investment portfolio that is kept in a bank safe deposit box. If the auditors are unable to count securities at the balance-sheet date, they most likely wil request the bank to confirm to the auditors the contents of the safe deposit box at the balance-sheet date. examine supporting evidence for transactions occurring during the year count the securities at a subsequent date and confirm with the bank whether securities were added or removed since the balance-sheet date. request the client to have the bank seal the safe deposit box until the auditors can count the securities at a subsequent date