The least severe type of report for disclosing departures from an unmodified report is the

Related Questions

• Q30:

  Inhaltsverzeichnis Show

  • Related Questions
  • Related Questions
  • What is standard unqualified report?
  • What is unqualified opinion Clean report?
  • What is a standard unmodified audit report?
  • What are the basic elements of an unmodified audit report?

  When amounts are so material that an adverse opinion is required, the opinion statement must clearly state that the financial report: A) does not present a true and fair view. B) should not be relied on. C) could not be audited. D) is not free from material error.

  

• Q31:

  Misstatements must be compared with some measurement base before a decision can be made about the materiality of the failure to follow accounting standards.A commonly accepted measurement base is: A) profit. B) total assets. C) current assets. D) all of the above

• Q32:

  An adverse opinion is issued when the auditor believes: A) some parts of the financial report are materially misstated or misleading. B) the audit firm is not independent. C) the misstatements are material and pervasive to the financial report. D) the financial report will be found to be misleading or misstated, if an adequate investigation is performed.

• Q33:

  Auditors sometimes encounter situations in which the outcome of a matter cannot be reasonably estimated at the time the financial report is issued.These matters are referred to as: A) significant uncertainties. B) non sequiturs. C) in suspense matters. D) inestimable matters.

• Q34:

  The need to issue a disclaimer of opinion arises when there is a: A) material scope limitation. B) material and pervasive scope limitation. C) conflict between reporting frameworks. D) conflict with management.

• Q36:

  The dollar amount of some misstatements cannot be accurately measured.For example, if the client were unwilling to disclose an existing legal action, the auditor must estimate its effect on: A) the auditor's exposure to lawsuits. B) users of the financial report. C) management's future decisions. D) net income.

• Q37:

  A disclaimer of opinion is issued whenever the auditor: A) believes that some material part of the financial report is not presented fairly. B) believes that the overall financial report is not presented fairly. C) has determined that the financial report is presented fairly. D) has been unable to obtain sufficient appropriate audit evidence on which to base the opinion, and the possible effects on the financial report could be both material and pervasive.

• Q38:

  In an adverse or disclaimer of opinion report, the auditor: A) believes that the effects are material. B) believes that the effects are pervasive. C) both A and B D) none of the above

• Q39:

  Which one of the following is NOT a departure from an unmodified opinion? A) a qualified opinion B) an adverse opinion C) an emphasis of matter section D) none of the above

• Q40:

  It is appropriate to issue an opinion that contains the phrase 'except for' when: A) there has been a material misstatement on a particular matter that is material and pervasive. B) the auditor has not accumulated sufficient appropriate evidence to determine whether the financial report is presented fairly. C) there has been a material misstatement on a particular matter that is material. D) none of the above

Related Questions

• Q18:

  When an adverse, qualified or disclaimer of opinion is issued, ASA 705 requires that the auditor's report includes: A) a clear description of all the substantive reasons for the opinion. B) where practicable, a quantification of the possible effect on the financial report. C) both A and B D) neither A nor B

• Q19:

  When a misstatement in the financial report would affect a user's decision but the overall statements are still fairly stated, it would be appropriate to issue: A) an inability to form an opinion. B) an unmodified opinion. C) an adverse opinion. D) a qualified opinion.

• Q20:

  The Corporations Act 2001 requires the auditor of a financial report to form an opinion about whether: A) the auditor has been given all necessary information, explanation and assistance. B) the entity has kept sufficient records for the financial report to be prepared and audited. C) the financial report complies with accounting standards and presents a true and fair view. D) all of the above

• Q21:

  When the auditor concludes that there is substantial doubt about the entity's ability to continue as a going concern and this has been adequately disclosed in the financial statements , the appropriate audit report would be: A) an unmodified opinion with no emphasis of matter section. B) a qualified opinion with an emphasis of matter section. C) an adverse opinion with an emphasis of matter section. D) an unmodified opinion with an emphasis of matter section.

• Q22:

  If a misstatement exists, but is unlikely to affect the decisions of a reasonable user, it is appropriate to issue: A) an ability to form an opinion. B) an unmodified opinion. C) a qualified opinion. D) an adverse opinion.

• Q24:

  Of the two major categories of scope limitations, (1) those caused by client and (2) those caused by conditions beyond the control of either client or auditor, the effect on the auditor's report: A) is more serious for 1 than for 2. B) is negligible. C) is more serious for 2 than for 1. D) is the same for both.

• Q25:

  It is appropriate to issue an opinion that contains the phrase 'except for' when: A) the auditor has not accumulated sufficient appropriate evidence to determine whether the financial report is presented fairly. B) there has been a material misstatement on a particular matter that is material and pervasive. C) there has been a material misstatement on a particular matter that is material. D) none of the above

• Q26:

  An adverse opinion is issued when the auditor believes: A) some parts of the financial report are materially misstated or misleading. B) the misstatements are material and pervasive to the financial report. C) the audit firm is not independent. D) the financial report will be found to be misleading or misstated, if an adequate investigation is performed.

• Q27:

  Goods Pty Ltd's financial report shows a profit increase of 20% on the previous year. The chairman's report in Goods Pty Ltd's annual report boasts of a 50% increase in profit from the previous year. The auditor's report should include: A) an emphasis of matter section. B) an adverse opinion. C) a qualified opinion. D) an 'except for' qualified opinion.

• Q28:

  In the auditor's responsibility paragraph of the audit report, the use of the term 'reasonable assurance' is intended to indicate that: A) no material misstatements exist in the financial statements. B) no misstatements exist in the financial statements. C) there is a possibility that immaterial misstatements still exist in the financial statements. D) there is a possibility that material misstatements still exist in the financial statements.

What is standard unqualified report?

What is unqualified opinion Clean report?

What is a standard unmodified audit report?

What are the basic elements of an unmodified audit report?