Exam 3: Reports on Audited Financial Statements and Audited Internal Controlt

In which of the following situations would an auditor ordinarily choose between expressing an "except for" qualified opinion or an adverse opinion?

A scope limitation imposed by a client would result in an adverse opinion.

When significant uncertainties exist the auditor must modify the opinion paragraph of the standard audit report.

A holding company has decided to carry its wholly owned subsidiary companies in the balance sheet using the equity method.The type of audit report required is

Which level of assurance requires PA to gather the most evidence?

An auditor will issue an adverse opinion when

Securities commissions such as the Ontario Security Commission allow public companies to file of financial statements that are not in accordance with GAAP as long as the auditor explains the departure in the audit report.

In which of the following circumstances is an auditor most likely to express an adverse opinion?

The words "except for" should be used in the scope paragraph only if there is a reservation resulting in a disclaimer of opinion or a scope qualification.

An auditor decided to issue a qualified opinion on an entity's financial statements because a major inadequacy in its computerized accounting records prevented the auditor from applying necessary procedures.The opinion paragraph of the auditor's report should state that the qualification pertains to

An auditor most likely would issue a disclaimer of opinion because of

When an auditor concludes there is substantial doubt about an entity's ability to continue as a going concern for a reasonable period of time, the auditor's responsibility is to

When a client will not permit inquiry of outside legal counsel, the audit report will ordinarily contain a (an)

All modifications to the standard unqualified audit report are called qualifications.

Without the public accountant's knowledge or consent, the enterprise indicates that the PA Was involved with information issued by them.

The standard audit report must always refer to consistency of accounting principles.

When an adverse opinion is given all the substantive reasons for the opinion must be disclosed in the report in explanatory paragraphs.

In Canada, when there has been a change in accounting principles and the effect of the change has been properly disclosed the auditor should

In which of the following circumstances is a public accountant considered associated with a company's financial information.

What are the public accountant's responsibilities when he or she is associated with the financial information of a company?