Question 1

Auditing Standard #3 requires the auditor:

Accepted Answer

A)  to complete all documentation as of the audit report date. 
B)  to complete all testing as of the audit report date. 
C)  to complete all documentation within 45 days of the audit report date. 
D)  None of the above. 
A)  to complete all documentation as of the audit report date. 
B)  to complete all testing as of the audit report date. 
C)  to complete all documentation within 45 days of the audit report date. 
D)  None of the above.

Question 2

If a material event occurs subsequent to the issuance of the financial statements that renders the audit report no longer reliable, the auditor should communicate that fact to all parties who are known to be relying on the audit report.

Accepted Answer

A) True 
 B)False

Question 3

Under GAAS,:

Accepted Answer

A)  the auditor can amend the language of the ICFR audit report. 
B)  the auditor can issue an adverse opinion on the ICFR without withdrawing from the engagement. 
C)  the auditor cannot issue an adverse opinion on ICFR without citing scope limitation. 
D)  the auditor can issue an adverse opinion on the ICFR only if (s)he issues a qualified opinion on the financial statements. 
A)  the auditor can amend the language of the ICFR audit report. 
B)  the auditor can issue an adverse opinion on the ICFR without withdrawing from the engagement. 
C)  the auditor cannot issue an adverse opinion on ICFR without citing scope limitation. 
D)  the auditor can issue an adverse opinion on the ICFR only if (s)he issues a qualified opinion on the financial statements.

Question 4

An audit report must be issued whenever an auditor is associated with financial statements.

Accepted Answer

A) True 
 B)False

Question 5

An adverse opinion requires modification of the opinion paragraph and the addition of a paragraph preceding the opinion paragraph explaining the circumstances motivating the opinion.

Accepted Answer

A) True 
 B)False

Question 6

If a material event is discovered prior to issuance of the financial statements the auditor must issue an audit report with two separate dates, one disclosing the date the regular field work ended and a separate date for disclosure of the subsequent event.

Accepted Answer

A) True 
 B)False

Question 7

Going concern issues should be addressed by the auditor:

Accepted Answer

A)  in an explanatory paragraph. 
B)  in the scope paragraph. 
C)  in the annual report. 
D)  All of the above. 
A)  in an explanatory paragraph. 
B)  in the scope paragraph. 
C)  in the annual report. 
D)  All of the above.

Question 8

You are approached by Dillon Audit Firm to finalize the audit for Jerrod Corp, a publically traded company having net sales of $10 million dollars, assets of $50 million, liabilities of $35 million and net income of $5 million. You agree and determine that the fieldwork is complete and only wrap-up remains. Describe below the procedures you would follow and order them appropriately.

Accepted Answer

(a) Review the work papers for material

Question 9

If the auditor is performing an audit of a nonpublic company and the client refuses to provide a management representation letter, the auditor may:

Accepted Answer

A)  issue a financial statement audit report. 
B)  issue an integrated audit report. 
C)  issue a financial statement audit report with a scope limitation. 
D)  depending on the circumstances, the auditor may choose any of the alternatives. 
A)  issue a financial statement audit report. 
B)  issue an integrated audit report. 
C)  issue a financial statement audit report with a scope limitation. 
D)  depending on the circumstances, the auditor may choose any of the alternatives.

Question 10

An audit report may need to be reissued if:

Accepted Answer

A)  the auditor is replaced and the subsequent auditor refuses to rely on the predecessor auditor's work. 
B)  the predecessor auditor relies wholly on the work of the successor auditor. 
C)  the successor auditor requests that the predecessor auditor issue an audit report on the previous year's financial statements, presented for comparative purposes. 
D)  depending on the circumstances, the auditor may choose any of the above. 
A)  the auditor is replaced and the subsequent auditor refuses to rely on the predecessor auditor's work. 
B)  the predecessor auditor relies wholly on the work of the successor auditor. 
C)  the successor auditor requests that the predecessor auditor issue an audit report on the previous year's financial statements, presented for comparative purposes. 
D)  depending on the circumstances, the auditor may choose any of the above.

Question 11

Wrap-up audit procedures include which of the following:

Accepted Answer

A)  subsequent events review. 
B)  going concern evaluation. 
C)  inquiry of a client's lawyer. 
D)  All of the above. 
A)  subsequent events review. 
B)  going concern evaluation. 
C)  inquiry of a client's lawyer. 
D)  All of the above.

Question 12

What types of audit reports are issued for financial statement audits? Are all of those types of reports likely to be issued for audits of public companies? If not,
which ones are not likely used and why?

Accepted Answer

Types of audit reports can be unqualifie

Question 13

Company A hired Q to perform its year-end audit. Subsequent to the completion of field work, but prior to the issuance of the financial statements, A discovers that one of its customers has filed for bankruptcy protection. Assume that Q decides to perform additional work to determine the affect of the bankrupt customer on A's financial statements, then Q:

Accepted Answer

A)  should issue a dual-dated report. 
B)  should expand the testing procedures and wrap-up work in order to extend the report date. 
C)  amend the financial statements with a footnote and issue the audit report as planned. 
D)  Either "a" or "b" depending on the amount of additional testing performed. 
A)  should issue a dual-dated report. 
B)  should expand the testing procedures and wrap-up work in order to extend the report date. 
C)  amend the financial statements with a footnote and issue the audit report as planned. 
D)  Either "a" or "b" depending on the amount of additional testing performed.

Question 14

ABC Auditors are auditing Jersey Charities, which is incorporated as a not-for-profit charitable organization. The fiscal year-end is June 30, 20X0. The auditors concluded their work on July 15th, 20X0 and dated their audit report on that date. On July 20th, a major donor declared bankruptcy, leaving in serious doubt collection by Jersey of material pledges owed. The auditors should:

Accepted Answer

A)  recall the audit report and re-issue a new one. 
B)  issue an amendment to the audit report dated July 20th. 
C)  determine if the financial statements have been made available. 
D)  depending on the circumstances, the auditor may choose any of the above. 
A)  recall the audit report and re-issue a new one. 
B)  issue an amendment to the audit report dated July 20th. 
C)  determine if the financial statements have been made available. 
D)  depending on the circumstances, the auditor may choose any of the above.

Question 15

In a financial statement audit, the difference between when an auditor issues a disclaimer or issues a qualified opinion because of a scope limitation centers on:

Accepted Answer

A)  the reason for the scope limitation. 
B)  management's attitude and response to the auditor. 
C)  the cause and severity of the scope limitation. 
D)  Both "a" and "b". 
A)  the reason for the scope limitation. 
B)  management's attitude and response to the auditor. 
C)  the cause and severity of the scope limitation. 
D)  Both "a" and "b".

Question 16

The management representation letter:

Accepted Answer

A)  is required per Audit Standard #5. 
B)  is dated as of the audit report date. 
C)  cannot substitute for audit evidence. 
D)  All of the above. 
A)  is required per Audit Standard #5. 
B)  is dated as of the audit report date. 
C)  cannot substitute for audit evidence. 
D)  All of the above.

Question 17

Company A hired Q to perform its year-end audit. Subsequent to year-end, A discovers that one of its customers has filed for bankruptcy protection. Q should:

Accepted Answer

A)  perform additional audit work to satisfy itself that the amount receivable from the customer is properly stated. 
B)  dual-date the audit report, noting the bankruptcy filing as the reason for the second date. 
C)  change the date of the audit report to include the time needed for additional testing. 
D)  Impossible to determine given lack of specifics. 
A)  perform additional audit work to satisfy itself that the amount receivable from the customer is properly stated. 
B)  dual-date the audit report, noting the bankruptcy filing as the reason for the second date. 
C)  change the date of the audit report to include the time needed for additional testing. 
D)  Impossible to determine given lack of specifics.

Question 18

If a client refuses to provide a management representation letter for an integrated audit, the auditor may:

Accepted Answer

A)  withdraw from the engagement. 
B)  note the scope limitation and issue a qualified opinion. 
C)  issue a report explaining the limitation in the explanatory paragraph. 
D)  None of the above. 
A)  withdraw from the engagement. 
B)  note the scope limitation and issue a qualified opinion. 
C)  issue a report explaining the limitation in the explanatory paragraph. 
D)  None of the above.

Question 19

Jimmy Joe, a young staff auditor, finds a document in his briefcase that relates to a client he worked on two months ago. Jimmy, fearing the worst, inserts the document in the client working papers without notifying his supervisors. By doing this, Jimmy has violated:

Accepted Answer

A)  AS #5 
B)  AS #7 
C)  AS #3 
D)  Impossible to determine given lack of specifics. 
A)  AS #5 
B)  AS #7 
C)  AS #3 
D)  Impossible to determine given lack of specifics.

Question 20

SOX section 103 and AS #7 require:

Accepted Answer

A)  second partner review of the work papers. 
B)  an independent review of the audit engagement. 
C)  an independent approval of the audit report. 
D)  All of the above. 
A)  second partner review of the work papers. 
B)  an independent review of the audit engagement. 
C)  an independent approval of the audit report. 
D)  All of the above.

Auditing Standard #3 requires the auditor:

If a material event occurs subsequent to the issuance of the financial statements that renders the audit report no longer reliable, the auditor should communicate that fact to all parties who are known to be relying on the audit report.

Under GAAS,:

An audit report must be issued whenever an auditor is associated with financial statements.

An adverse opinion requires modification of the opinion paragraph and the addition of a paragraph preceding the opinion paragraph explaining the circumstances motivating the opinion.

If a material event is discovered prior to issuance of the financial statements the auditor must issue an audit report with two separate dates, one disclosing the date the regular field work ended and a separate date for disclosure of the subsequent event.

Going concern issues should be addressed by the auditor:

If the auditor is performing an audit of a nonpublic company and the client refuses to provide a management representation letter, the auditor may:

An audit report may need to be reissued if:

Wrap-up audit procedures include which of the following:

What types of audit reports are issued for financial statement audits? Are all of those types of reports likely to be issued for audits of public companies? If not, which ones are not likely used and why?

In a financial statement audit, the difference between when an auditor issues a disclaimer or issues a qualified opinion because of a scope limitation centers on:

The management representation letter:

Company A hired Q to perform its year-end audit. Subsequent to year-end, A discovers that one of its customers has filed for bankruptcy protection. Q should:

If a client refuses to provide a management representation letter for an integrated audit, the auditor may:

Jimmy Joe, a young staff auditor, finds a document in his briefcase that relates to a client he worked on two months ago. Jimmy, fearing the worst, inserts the document in the client working papers without notifying his supervisors. By doing this, Jimmy has violated:

SOX section 103 and AS #7 require:

An Introduction to Auditing

Overview of an Integrated Audit

The Auditors Role in Society

Legal Environment Affecting Audits Pt Iii Executing an Integrated Audit

Client Acceptance and Continuance and Preliminary Engagement Procedures

Audit Planning and Risk Assessment

Internal Control, Understanding the Clients Internal Control Over Financial Reporting and Auditing Design Effectiveness

Planning and Testing Operating Effectiveness of Internal Control Over Financial Reporting

Substantive Procedures and the Financial Statement Audit

Auditing Revenue Process: Sales, Billing and Collection in the Health-Care Provider and Retailing Industries

The Acquisition and Payments Cycle and Related Accounts: Purchases, Cash Disbursements and Other Related Activities in the Automotive Industry

Auditing Human Resources Cycle Process: Personnel and Payroll in Service Industries

Auditing Inventory Processes: Tracking and Costing Products in the Land Development and Home Building Industry

Assets, Liabilities and Equity Related to the Financing Cycle

Topics Beyond the Integrated Audit

Filters

Exam 11: Completing the Integrated Audit and Reporting

Auditing Standard #3 requires the auditor:

If a material event occurs subsequent to the issuance of the financial statements that renders the audit report no longer reliable, the auditor should communicate that fact to all parties who are known to be relying on the audit report.

Under GAAS,:

An audit report must be issued whenever an auditor is associated with financial statements.

An adverse opinion requires modification of the opinion paragraph and the addition of a paragraph preceding the opinion paragraph explaining the circumstances motivating the opinion.

If a material event is discovered prior to issuance of the financial statements the auditor must issue an audit report with two separate dates, one disclosing the date the regular field work ended and a separate date for disclosure of the subsequent event.

Going concern issues should be addressed by the auditor:

If the auditor is performing an audit of a nonpublic company and the client refuses to provide a management representation letter, the auditor may:

An audit report may need to be reissued if:

Wrap-up audit procedures include which of the following:

What types of audit reports are issued for financial statement audits? Are all of those types of reports likely to be issued for audits of public companies? If not, which ones are not likely used and why?

In a financial statement audit, the difference between when an auditor issues a disclaimer or issues a qualified opinion because of a scope limitation centers on:

The management representation letter:

Company A hired Q to perform its year-end audit. Subsequent to year-end, A discovers that one of its customers has filed for bankruptcy protection. Q should:

If a client refuses to provide a management representation letter for an integrated audit, the auditor may:

Jimmy Joe, a young staff auditor, finds a document in his briefcase that relates to a client he worked on two months ago. Jimmy, fearing the worst, inserts the document in the client working papers without notifying his supervisors. By doing this, Jimmy has violated:

SOX section 103 and AS #7 require:

An Introduction to Auditing

Overview of an Integrated Audit

The Auditors Role in Society

Legal Environment Affecting Audits Pt Iii Executing an Integrated Audit

Client Acceptance and Continuance and Preliminary Engagement Procedures

Audit Planning and Risk Assessment

Internal Control, Understanding the Clients Internal Control Over Financial Reporting and Auditing Design Effectiveness

Planning and Testing Operating Effectiveness of Internal Control Over Financial Reporting

Substantive Procedures and the Financial Statement Audit

Auditing Revenue Process: Sales, Billing and Collection in the Health-Care Provider and Retailing Industries

The Acquisition and Payments Cycle and Related Accounts: Purchases, Cash Disbursements and Other Related Activities in the Automotive Industry

Auditing Human Resources Cycle Process: Personnel and Payroll in Service Industries

Auditing Inventory Processes: Tracking and Costing Products in the Land Development and Home Building Industry

Assets, Liabilities and Equity Related to the Financing Cycle

Topics Beyond the Integrated Audit

Filters