As compared to an unmodified opinion, an opinion qualified due to a material

departure from generally accepted accounting principles would

(1) include an extra paragraph, following the opinion paragraph.
(2) indicate that, except for the problem noted, the financial statements are
presented fairly.
(3) include a slight modification to the introductory paragraph.
(4) include a slight modification to the auditor's responsibility paragraph.

An auditor who qualified an opinion because of insufficiency of audit evidence should

refer to the scope limitation in the
(1) Auditor's responsibility paragraph and note to the financial statements
(2) Opinion paragraph
(3) Auditor's responsibility paragraph and opinion paragraph
(4) Auditor's responsibility paragraph, opinion paragraph, and note to the financial
statements

An adverse opinion and a disclaimer of opinion

(1) may be used interchangeably.
(2) both require modification of the introductory paragraph.
(3) result in the auditor's withdrawal from the engagement.
(4) indicate situations in which there are material departures from the standards.

Which of the following best describes why an independent auditor is asked to express an
opinion on the fair presentation of financial statements?

The opinion of an independent party is needed because a company may not be objective
with respect to its own financial statements

Which of the following statements about a combined report on the financial state - ments
and internal control over financial reporting is correct?
(1) The auditor’s opinion on internal control is for the same period of time as the opinion on
the financial statements.
(2) The report includes additional paragraphs for the definition and limitations of internal
control.
(3) The introductory, scope, and opinion paragraphs are unchanged from a report for an
audit of the financial statements only.
(4) GAAP is the framework used to evaluate internal control.

The introductory paragraph of an auditor's report contains the following "We

did
Indicate a division of the responsibility

A standard unqualified report contains the following distinct

parts:

Engagement, Scope and Opinion paragraphs

 Introductory, Scope and Closing paragraphs

Introductory, Scope and Opinion paragraphs

None of the above

The following are categories of audit reports except:

Qualified

Adverse

Standard Unqualified

All of these are categories of audit reports

The following are the most important causes of the addition

of an explanatory paragraph or modification in the wording
of a standard unqualified report.
Emphasis of a matter

Reports involving other auditors

Auditor agrees with a departure from promulgated accounting

principles

All of the above

An auditor that modifies its report because of concerns that
the company may not be able to pay its obligations as they
came due is concerned about:
Compatibility

Materiality

Going concern

Consistency

A limitation in scope arises when:

A material misstatement in the assertion is discovered

An auditor lacks independence

A and D only

A client imposes restrictions on the auditor

Which of the following correctly states the correct opinion

that would be issued based on the level of materiality of a
misstatement?
Material-Qualified

Highly Material-Unqualified
 Immaterial-Adverse

All of the above

Rule 203 of the Code of Professional Conduct allows a

departure from GAAP when:

The cost to adhere to the rules would be too great

Earnings would not be adversely affected

They would result in misleading financial statements

When the Board of Directors vote to regard the GAAP

An adverse audit report contains:

Two paragraphs

Ten paragraphs

Five paragraphs

Four paragraphs
 The International Auditing and Assurance Standards Boards
issues:

ISA

GAAS

GAAP

All of the above

The audit report should be dated:

The date on which the auditor completed the auditing

procedures in the field

The last day of the calendar year

The last day of the fiscal year

None of the above

Independent auditing can best be described as

A discipline that attests to the results of accounting and other functional
operations and data

Which of the following professional services is an attestation

engagement
An engagement to report on compliance with statutory requirements

Which of the following attributes is likely to be unique to the audit work

of CPAs as compared to the work performed by practitioners of other
professions?
Independence

International Standards on Auditing are established by the:

International Auditing and Assurance Standards Board
Which of the following best describes what is meant by U.S. generally
accepted auditing standards?
Measures of the quality of the auditor's performance

The general group of U.S. generally accepted auditing standards

includes a requirement that:
Due professional care be exercised by the auditor

What is the general character of the three generally accepted auditing

standards classified as standards of field work?
The criteria of audit planning and evidence gathering