4 Distinguish between a standard unqualified auditor's report and a modified unqualified auditor's report. P What is the purpose of adding an emphasis of matter paragraph to an audit repora Discuss the circumstances that may cause the auditor to include an emphasis of matter

4 Distinguish between a standard unqualified auditor's report and a modified unqualified auditor's report. P What is the purpose of adding an emphasis of matter paragraph to an audit repora Discuss the circumstances that may cause the auditor to include an emphasis of matter

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter15: Audit Reports For Financial Statement Audits

Section: Chapter Questions

Problem 23RQSC

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Question

4 Distinguish between a standard unqualified auditor's report and a modified unqualified
auditor's report.
S What is the purpose of adding an emphasis of matter paragraph to an audit report
Discuss the circumstances that may cause the auditor to include an emphasis of matter

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S1: The phrase “PFRS or PFRS for SMEs” can be found in the opinion paragraph of a standard unqualified report. S2: Emphasis of Matter paragraph and Other Matter paragraphs result to modifications of auditor’s report and, therefore, the auditor’s opinion.a. Only S1 is true.b. Only S2 is true.c. Both S1 and S2 are true.d. Both S1 and S2 are false.
6 Discuss and describe the basic sections of the Auditor’s Report and explain the significance of the elements that should be included in each section.
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Which item regarding an Emphasis of Matter paragraph is true? a. The auditor will use the E of M to restrict distribution of the audit report. b. The auditor will use the E of M when the client has corrected an error in the previous financial statements. c. An E of M will be used when a material error exists in the current financial statements. d. The E of M paragraph is usually located immediately before the opinion paragraph. e. The E of M paragraph would be used to discuss a client's change in the method to estimate bad debts.
If there is a matters that pose challenges to the auditor in obtaining appropriate audit evidence or in forming an opinion on the financial statements; or matter is highlighted in __________ a. Going concern paragraph b. Key Audit Matter Paragraph c. Other matter Paragraph d. Emphasis of matter Paragraph
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6-Which section of the audit report contains the matters communicated to and addressed by the auditor based on his professional judgments during the course of audit? a. Opinion section b. Key audit matters c. Basis of opinion d. Going concern