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.

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.

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 24RQSC

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Similar questions

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.
s1: When the auditor includes an Emphasis of Matter paragraph in the auditor's report, the auditor shall include it immediately after the Basis for Opinion paragraph in the auditor's report. S2: The inclusion of an Emphasis of Matter paragraph in the auditor's report does not affect the auditor's opinion. O S1 is True, S2 is False O S1 is False, S2 is True O Both statements are True O Both statements are False
Q3. The following four situations require a modification to the standard unqualified/unmodified audit report. Identify the modification required for each. a. Opinion based in part on the report of another auditor.b. Going concern.c. Lack of consistency.d. Additional emphasis. note: please only mention if its unqualified or unmodified audit report.
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
S1: If the engagement is revised from an audit to agreed-upon procedures, the new engagement should not mention the original engagement.S2: Compliance audits are used to determine adherence to rules and regulations set by higher authority. Group of answer choices Only S1 is correct. Both S1 and S2 are correct. Both S1 and S2 are incorrect. Only S2 is correct.
8 S1: If the engagement is revised from an audit to agreed-upon procedures, the new engagement should not mention the original engagement. S2: Compliance audits are used to determine adherence to rules and regulations set by higher authority. Group of answer choices Both S1 and S2 are incorrect. Only S1 is correct. Both S1 and S2 are correct. Only S2 is correct.
The phrase “except for the possible effects of the matter described…” appears in an audit report. This could be what type of opinion? a. Qualified Adverse Disclaimer Yes Yes No b. Qualified Adverse Disclaimer Yes No No c. Qualified Adverse Disclaimer No No Yes d. Qualified Adverse Disclaimer No Yes No e. Qualified Adverse Disclaimer Yes Yes Yes
Which paragraphs, if any, of the standard unqualified opinion, are auditing standards (i.e., GAAS) and GAAP standards referenced? Auditing Standards GAAP Standards A. Not Řeferenced Opinion B. Basis for Opinion Opinion C. Opinion Basis for Opinion D. Opinion Not Referenced
22. When expressing a qualified opinion, the auditor should include a separate explanatory paragraph describing the effects of the qualification. This paragraph should be placed after the opinion paragraphSelect one:TrueFalse
S1: The Basis for Opinion Paragraph should always be presented after the Opinion Paragraph, but PSA 700 does not establish the order of presenting the other elements of the Auditors Report. S2: Scope limitations resull in either a qualilied opinion or adverse opinion. S1 is True, S2 is False S1 is False, S2 is True Both statements are True Both statements are False
Which of the following is not a condition before an auditor may add Emphasis of Matter paragraph in the auditor’s report?a. Matter is already fully disclosed in the financial statements.b. No material misstatement exists.c. Not result to modification of opinion.d. Be placed immediately after the opinion.
When reporting under GAAS, certain statements are required in all auditors’ reports(“explicit”) and others are required only under certain conditions (“implicit”). Which combination that follows correctly describes the auditors’ responsibilities for reporting?LO 12-1(a) (b) (c) (d)1. GAAP Explicit Explicit Implicit Implicit2. Consistency Implicit Explicit Explicit Implicit3. Going concern Implicit Implicit Explicit Explicit4. Opinion Explicit Explicit Implicit Implicit