Unqualified opinion with an explanatory paragraph. O Adverse opinion O Qualified opinion O Unqualified opinion
Q: When a client has a going concern issue, .AU-C 570 The Auditor’s Consideration of an Entity’s…
A: A Type II subsequent event provides evidence of conditions that arose after the date of the…
Q: True/False) All of the regulations for Section 162 are proposed regulations.
A: The general rule for section 162 states that "A deduction of ordinary and necessary expenses paid or…
Q: A qualified audit report (qualified opinion) would usually be issued when a client's financial…
A: Qualified Audit Report means an auditor have opinion that some accounting treatments need…
Q: Why or what are the reason or reasons that would cause the trial balance to be considered as…
A: Trial Balance - After transferring all the transactions into Ledgers Company closes the accounts and…
Q: Material disagreements with management will result in either: * O a qualified opinion or adverse…
A: Material disagreement between auditor and management arises when their is an unsuitable Accountant…
Q: 1.- True or False. Fill in the space with your answer (V) or (F), always justify that you qualify it…
A: Since we only answer up to 3 subparts, we will answer the first 3. Please resubmit the question and…
Q: Any evidence lawfully offered at trial to show a disputed topic and persuade the jury to believe…
A: The answer for the multiple choice question and relevant explanation are presented hereunder : The…
Q: I. In the context of assurance engagements, “practitioner” is necessarily a CPA. II. CPAs may also…
A: The question is related to Auditing and is related to the scope of auditor.
Q: If the previously stated situation is deemed to be a highly material event the type of report that…
A: The adverse opinion indicates that the firm's financial situation is not good and grossly…
Q: Select the term with the most appropriate response. No reply is u Term 1. Formal commitment 2.…
A: The answer is stated below:
Q: In each of the circumstances listed below, match the situation to the type of opinion that should be…
A: There are four types of audit reports: and unqualified opinion, a qualified opinion, an adverse…
Q: 22. When expressing a qualified opinion, the auditor should include a separate explanatory paragraph…
A: Audit is the complete process of checking and verifying the authenticity and accuracy of financial…
Q: which type of audit report the client prefer : Select one: a. unqualified b. disclaimer c. adverse…
A: Disclaimer is given when the auditor disclaims from forming an opinion due to insufficient evidence.…
Q: Define Unadjusted trial balance.
A: The unadjusted trial balance is the listing of general ledger account balances at the end of a…
Q: A restriction on the scope of the auditor's examination requires A. a basis for a qualified…
A: When auditor is restricted from obtaining sufficient audit evidences in relation to any item of…
Q: Which statement is incorrect? A. The systematic manner of presentation of Notes to F/S is…
A: The notes to the financial statement shall present the information about the basis and the…
Q: Substantive tests procedures are chosen based on the assertion(s) for which the auditor seeks…
A: Substantive procedures (or substantive tests) are those activities performed by the auditor to…
Q: 9. Unable to arrive at an opinion due to a very significant scope limitation is example of Adverse…
A: If the financial statement is misstated or the auditor is unable to collect the audit evidence for…
Q: CHOICES A. Only Statement I is correct B. Only Statement II is false C. Statements II and III are…
A: The financing of long-term assets with long-term debt is referred to as Hedging. 3/20 means 3%…
Q: Using IFRS, a change in accounting policy for which a standard does not include specific…
A: IFRS: International Financial Reporting Standard is abbreviated as IFRS. The IFRS is set up to bring…
Q: Explain the difference between substantive and procedural due process.
A: Definition: Managerial accounting: Managerial accounting is the process of identifying, measuring,…
Q: The auditor shall express an adverse opinion when a matte
A: Auditor: Auditors can be a person or firm appointed by the company to review and provide opinions on…
Q: 46 Which one of the following types of audit opinion is provided in the clean report? a. Qualified…
A: Auditing means the independent checking of company operation by outsiders. The auditor is qualified…
Q: please question d) e) and F)
A: in order to calculate Weighted average cost of capital it is important to know the cost of capital…
Q: Why might an auditor decide to disclaim an opinion?
A: Audit refers to the process of reviewing the controls and processes that can be used further by the…
Q: A court will uphold any agency rule making decision so long as the agency at issue did not exceed…
A: Agency decision refers to the final order to the decision or the determination of the administrative…
Q: 93-94 Whenever an auditor issues a qualified report, he or she Group of answer choices a. must…
A: SOLUTION- WHENEVER AN AUDITOR ISSUES A QUALIFIED REPORT , HE OR SHE MUST "USE THE TERM SUBJECT TO IN…
Q: IFRS may be overridden in wide circumstances to achieve fair presentation Select one: True False
A: The objective of financial reporting is true and fair reporting of financial statements.
Q: Which of the following report will be issued when the auditor concludes that there is scope…
A: The limitation of scope refers to the limitation on the things that can be performed by the auditor…
Q: Unmodified opinion refers to ______
A: In general audit option can be of two major types . They are a) Unmodified b) Modified Opinion…
Q: Distinguished between an an unmodified opinion, qualified, adverse opinion and disclaimer of…
A: Auditing is the process of identifying, classifying, summarising and analysing financial information…
Q: If a material exception relates to a departure from PFRSs, the auditor may issue either: A.…
A: Solution: If a material exception relates to a departure from PFRSs, the auditor may issue either…
Q: prior to date of record. Which of the following statements is FALSE?
A: Statement (I) is true. This is because record date is the date on which all the shareholders…
Q: Within AASB 101 there is a prohibition on disclosing ‘extraordinary items’. Provide an assessment of…
A: Extraordinary items refers to the non-recurring items that are infrequent and unusual in the…
Q: Identify situations in which language in the standard (unmodified) report is modified and the type…
A: Definition:
Q: rue or false question
A: These are the accounting transactions that are having a monetary impact on the financial statement…
Q: for each of following citations, identify the type of authority (Statutory, administrative, or…
A: Below are the provided authority and the citation:
Q: True or False. As a rule, deduction means itemized deduction
A: Deduction is reduction of taxable income . It is deducted from the tax payers gross income which…
Q: The auditor shall never include in the same auditor’s report an unmodified opinion on a single FS…
A: If the auditor determines that it is essential to express an adverse opinion or disclaim an opinion…
Q: n in t
A: An action that is a civil action for injury damages death damages or property damages or damaging of…
Q: Distinguish between an unqualified report with an emphasisof-matter explanatory paragraph or…
A: Auditing: Auditing refers to an independent examination of financial information of any…
Q: What are the major differences in wording for qualified opinions and adverse opinions issued asa…
A:
Q: Identify the three alternative opinions that may be appropriatewhen the client’s financial…
A: Following are the three alternative opinions that may be appropriate when the client’s financial…
Q: In certain cases, the practitioner may issue review reports that include an Emphasis of Matter and…
A: An emphasis of matter paragraph should be included in the review report when the practitioner feels…
Q: r mod paragraph Cp
A: An auditor who is called an engagement partner(who has the responsibility to issue an opinion) must…
Q: 1. Which of the following is ordinarily true of a modification of the audit report by adding an…
A: SOLUTION- EMPHASIS OF MATTER PARAGRAPH - A PARAGRAPH INCLUDED IN THE AUDITOR'S REPORT THAT REFERS TO…
Q: departure from an unqualified opinion
A: An unqualified opinion is an audit opinion issued by auditor in case of true and fair presentation…
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- In a client currently using straight-line method for all depreciable assets acquires a new class of depreciable assets to initiate a new product line and begins to depreciate these assets on an accelerated basis, the auditor should A. Add a separate explanatory paragraph to the reportB. Express an adverse opinionC. Express the opinion subject to the effect of new depreciation methodD. Express thee opinion with no modification for the accounting changeWhen the auditor wants to test the asset for impairment, the auditor would most likely be concerned with the recoverable amount of an intangible asset. For this purpose, the recoverable amount of an intangible asset is not: a. Fair value less cost to sell b. Value in use c. Fair value less cost to sell or value in use, whichever is lower d. Fair value less cost to sell or value in use, whichever is higherAn entity changed from the straight-line method to the declining-balance methodof depreciation for all newly acquired assets. This change has no material effect onthe current year’s financial statements but is reasonably certain to have a substantialeffect in later years. If the change is disclosed in the notes to the financial statements,the auditor should issue a report with a(n)(1) qualified opinion.(2) unqualified opinion with explanatory paragraph.(3) unqualified opinion.(4) qualified opinion with explanatory paragraph regarding consistency.
- State the appropriate audit opinion that the auditor would require for: A new client has changed its valuation method of property, plant and equipment. It has adopted the Fair Value Revaluation Model to replace the Historic cost measurement method. Whilst the auditor does not object to the change in the valuation model, the new method has a material effect on the financial statements and has not been disclosed. A special meeting was held between the CFO and the Finance Team and the Lead Partner from the Audit team, but nothing was resolved.When the auditor wants to test the asset for impairment, the auditor would most likely be concerned with the recoverable amount of an intangible asset. For this purpose, the recoverable amount of an intangible asset is not: Fair value less cost to sell Value in use Fair value less cost to sell or value in use, whichever is lower Fair value less cost to sell or value in use, whichever is higherSanchez Company accounts carries its long term assets at market values. Current market values exceed historical cost by a material but not pervasive amount. The auditor would issue a(n): * O Unqualified opinion O Qualified opinion Disclaimer of opinion Adverse opinion
- Upon investigation, an auditor concludes that the client has recognized an internally developed goodwill as an asset. Which of the following courses of action is correct? a. Discuss with the client the possibility of expensing the expenditures instead of recognizing it as an asset. b. The auditor should immediately issue a qualified or adverse opinion. c. Ask from the client documentary evidence supporting the expenditures made to recognize the asset. d. Resign from the engagement and report to Philippine SEC the client's recognition of internally generated goodwill as an asset.Material loss contingencies should be recorded in the financial statements if available information indicates it is probable that a loss had been sustained prior to the balance sheet date and the amount of such loss can be reasonably estimated. For a public company these considerations will affect the audit report as follows: ) If a loss meets these criteria, the auditor may issue an unqualified opinion but is required to point out the contingency in an explanatory paragraph of the report. If a loss meets these criteria and is disclosed in the financial statement notes, the auditor may issue an unqualified opinion, but is required to point out the contingency in an explanatory paragraph of the report. ) If a loss meets these criteria and is disclosed in the financial statement notes, the auditor may issue an unqualified opinion, but should consider adding an explanatory paragraph as a means of emphasizing the disclosure. If a loss is probable but the amount cannot be reasonably…The auditor should see to it that fully depreciated property, plant, and equipment still in use must be disclosed True or False?
- 8. In which of the following situations would an auditor originally choose between expressing a qualified opinion or an adverse opinion? a. The auditor did not observe the entity's physical inventory and is unable to become satisfied about its balance by other auditing procedure b. Conditions that cause the auditor to have substantial doubt about the entity's ability to continue as a going concern are inadequately disclosed. c. Both a and b. с. d. Neither a nor b.In evaluating the fair value of net assets in an acquisition the auditor has to gather independent evidence in deciding whether the assessed values are appropriate. Which of the following is not one of the steps the auditor normally would perform in making that assessment? Evaluate the qualifications of the specialist. O Determine their independence from the client. Make the valuations themselves. O Review methodology.Choose the appropriate audit opinion from the following:... Choose the appropriate audit opinion from the following: • Adverse • Disclaimer • Qualified • Unmodified Auditors' judgment about the Pervasiveness of the Effects or Possible Effect on the Financial Statements Nature or Matter Giving Rise to the Modification Not Material Material but not pervasive Material and Pervasive Scope limitation Departure from GAAP
