Which of the following is not a type of auditor's opinion? a. Adverse D. Qualified c. Ordinary d. Unqualified A CPA agreed to audit Kelly Company. During the audit, she became aware of her lack of adequate technical training required for the engagement. What should she do? a. Issue a disclaimer opinion. b. Issue an adverse opinion. C. Suggest that Kelly engage a CPA with adequate technical training. d. Rely on the competence of Management and its accounting personnel. 10 If a stockholder sues a CPA firm for common law fraud based on a material misstatements contained in the financial statements audited by the CPA, which of the following is the CPA's best defense? a. The stockholder has privity of contract i.e. the right to sue. b. There was contributory negligence by Management. C. The CPA did not benefit from the alleged misstatement. d. The auditor followed Generally Accepted Auditing Standards. Competence as a CPA includes all of the following except a. having adequate technical training. b. having independence in mental attitude. C. guaranteeing the work performed. d. exercising due professional care. When a plaintiff has prevailed at the trial level of a lawsuit against the auditors, the plaintiff is not required to prove which of the following: a. The financial statements contained a material misstatement. b. The auditor was negligent. C. The plaintiff relied on the financial statements. d. Damages were suffered as a result of reliance on the financial statements. 13. The 1136 Tenants v Rothenberg case was important because of its emphasis upon the legal liability of CPAs when associated with a. a review of financial statements. db b.unaudited financial statements. C. an audit resulting in a disclaimer of opinion. d. disclaimer and adverse opinion letters. 14. The auditor must exercise due care to avoid being guilty of a. bias. b. fraud. C. negligence. d. errors in judgement