Audit Opinions - CPA Auditing and Attestation (AUD)
Card 1 of 24
Which statement is true regarding a compilation report?
Which statement is true regarding a compilation report?
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AR-C Section 60 of the identifies “General Principles for Engagements Performed in Accordance with Statements on Standards for Accounting and Review Services. Compilation Engagements are required to comply with this section.
AR-C Section 60 of the identifies “General Principles for Engagements Performed in Accordance with Statements on Standards for Accounting and Review Services. Compilation Engagements are required to comply with this section.
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Alfa Inc. operates a chain of restaurants in highly populated tourist destinations in the southern United States. Because of recent events, beyond the control of management, it is likely that Alfa will not survive the year. The auditors should report Alfas situation as
Alfa Inc. operates a chain of restaurants in highly populated tourist destinations in the southern United States. Because of recent events, beyond the control of management, it is likely that Alfa will not survive the year. The auditors should report Alfas situation as
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An emphasis of matter paragraph is used to support the auditor’s judgment concerning an event that needs to be highlighted. An emphasis of matter paragraph is required when the auditor has doubts about the entity's ongoing concern.
An emphasis of matter paragraph is used to support the auditor’s judgment concerning an event that needs to be highlighted. An emphasis of matter paragraph is required when the auditor has doubts about the entity's ongoing concern.
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In the course of auditing Litmus, Inc., the auditors have uncovered a scheme by management to overvalue inventory in order to adhere to bond covenants. The firm approached management and indicated the practice would stop; however, they did not want to correct this year’s financial statements. The auditor should:
In the course of auditing Litmus, Inc., the auditors have uncovered a scheme by management to overvalue inventory in order to adhere to bond covenants. The firm approached management and indicated the practice would stop; however, they did not want to correct this year’s financial statements. The auditor should:
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According to AU-C Section 75: “ The auditor should express an adverse opinion when the auditor, having obtained sufficient appropriate audit evidence, concludes that misstatements, individually or in the aggregate, are both material and pervasive to the financial statements.”
According to AU-C Section 75: “ The auditor should express an adverse opinion when the auditor, having obtained sufficient appropriate audit evidence, concludes that misstatements, individually or in the aggregate, are both material and pervasive to the financial statements.”
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In the formation of a financial statement opinion, the auditor would least likely evaluate whether:
In the formation of a financial statement opinion, the auditor would least likely evaluate whether:
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When forming an audit opinion of financial statements, the auditor is least likely to evaluate whether earnings forecasts made by investors are met.
When forming an audit opinion of financial statements, the auditor is least likely to evaluate whether earnings forecasts made by investors are met.
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Of the following factors, which should most influence an auditor’s decision to modify the audit opinion of an issuer’s financial statements?
Of the following factors, which should most influence an auditor’s decision to modify the audit opinion of an issuer’s financial statements?
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The effect of a misstatement on the financial statements taken as a whole should most likely influence an auditor’s decision to modify the audit opinion.
The effect of a misstatement on the financial statements taken as a whole should most likely influence an auditor’s decision to modify the audit opinion.
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John Ryan, CPA needs to research guidance for the engagement of his client. The client is a private unaudited non-issuer and wants a compilation completed. In which of the following sections of various literature sources would John find relevant guidance?
John Ryan, CPA needs to research guidance for the engagement of his client. The client is a private unaudited non-issuer and wants a compilation completed. In which of the following sections of various literature sources would John find relevant guidance?
Tap to reveal answer
AR-C is a section of the AICPA's guidance on SSARS. As this engagement is a compilation for an unaudited non-issuer, it would be considered SSARS.
AR-C is a section of the AICPA's guidance on SSARS. As this engagement is a compilation for an unaudited non-issuer, it would be considered SSARS.
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Which statement is true regarding a compilation report?
Which statement is true regarding a compilation report?
Tap to reveal answer
AR-C Section 60 of the identifies “General Principles for Engagements Performed in Accordance with Statements on Standards for Accounting and Review Services. Compilation Engagements are required to comply with this section.
AR-C Section 60 of the identifies “General Principles for Engagements Performed in Accordance with Statements on Standards for Accounting and Review Services. Compilation Engagements are required to comply with this section.
← Didn't Know|Knew It →
Alfa Inc. operates a chain of restaurants in highly populated tourist destinations in the southern United States. Because of recent events, beyond the control of management, it is likely that Alfa will not survive the year. The auditors should report Alfas situation as
Alfa Inc. operates a chain of restaurants in highly populated tourist destinations in the southern United States. Because of recent events, beyond the control of management, it is likely that Alfa will not survive the year. The auditors should report Alfas situation as
Tap to reveal answer
An emphasis of matter paragraph is used to support the auditor’s judgment concerning an event that needs to be highlighted. An emphasis of matter paragraph is required when the auditor has doubts about the entity's ongoing concern.
An emphasis of matter paragraph is used to support the auditor’s judgment concerning an event that needs to be highlighted. An emphasis of matter paragraph is required when the auditor has doubts about the entity's ongoing concern.
← Didn't Know|Knew It →
In the course of auditing Litmus, Inc., the auditors have uncovered a scheme by management to overvalue inventory in order to adhere to bond covenants. The firm approached management and indicated the practice would stop; however, they did not want to correct this year’s financial statements. The auditor should:
In the course of auditing Litmus, Inc., the auditors have uncovered a scheme by management to overvalue inventory in order to adhere to bond covenants. The firm approached management and indicated the practice would stop; however, they did not want to correct this year’s financial statements. The auditor should:
Tap to reveal answer
According to AU-C Section 75: “ The auditor should express an adverse opinion when the auditor, having obtained sufficient appropriate audit evidence, concludes that misstatements, individually or in the aggregate, are both material and pervasive to the financial statements.”
According to AU-C Section 75: “ The auditor should express an adverse opinion when the auditor, having obtained sufficient appropriate audit evidence, concludes that misstatements, individually or in the aggregate, are both material and pervasive to the financial statements.”
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In the formation of a financial statement opinion, the auditor would least likely evaluate whether:
In the formation of a financial statement opinion, the auditor would least likely evaluate whether:
Tap to reveal answer
When forming an audit opinion of financial statements, the auditor is least likely to evaluate whether earnings forecasts made by investors are met.
When forming an audit opinion of financial statements, the auditor is least likely to evaluate whether earnings forecasts made by investors are met.
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Of the following factors, which should most influence an auditor’s decision to modify the audit opinion of an issuer’s financial statements?
Of the following factors, which should most influence an auditor’s decision to modify the audit opinion of an issuer’s financial statements?
Tap to reveal answer
The effect of a misstatement on the financial statements taken as a whole should most likely influence an auditor’s decision to modify the audit opinion.
The effect of a misstatement on the financial statements taken as a whole should most likely influence an auditor’s decision to modify the audit opinion.
← Didn't Know|Knew It →
John Ryan, CPA needs to research guidance for the engagement of his client. The client is a private unaudited non-issuer and wants a compilation completed. In which of the following sections of various literature sources would John find relevant guidance?
John Ryan, CPA needs to research guidance for the engagement of his client. The client is a private unaudited non-issuer and wants a compilation completed. In which of the following sections of various literature sources would John find relevant guidance?
Tap to reveal answer
AR-C is a section of the AICPA's guidance on SSARS. As this engagement is a compilation for an unaudited non-issuer, it would be considered SSARS.
AR-C is a section of the AICPA's guidance on SSARS. As this engagement is a compilation for an unaudited non-issuer, it would be considered SSARS.
← Didn't Know|Knew It →
Which statement is true regarding a compilation report?
Which statement is true regarding a compilation report?
Tap to reveal answer
AR-C Section 60 of the identifies “General Principles for Engagements Performed in Accordance with Statements on Standards for Accounting and Review Services. Compilation Engagements are required to comply with this section.
AR-C Section 60 of the identifies “General Principles for Engagements Performed in Accordance with Statements on Standards for Accounting and Review Services. Compilation Engagements are required to comply with this section.
← Didn't Know|Knew It →
Alfa Inc. operates a chain of restaurants in highly populated tourist destinations in the southern United States. Because of recent events, beyond the control of management, it is likely that Alfa will not survive the year. The auditors should report Alfas situation as
Alfa Inc. operates a chain of restaurants in highly populated tourist destinations in the southern United States. Because of recent events, beyond the control of management, it is likely that Alfa will not survive the year. The auditors should report Alfas situation as
Tap to reveal answer
An emphasis of matter paragraph is used to support the auditor’s judgment concerning an event that needs to be highlighted. An emphasis of matter paragraph is required when the auditor has doubts about the entity's ongoing concern.
An emphasis of matter paragraph is used to support the auditor’s judgment concerning an event that needs to be highlighted. An emphasis of matter paragraph is required when the auditor has doubts about the entity's ongoing concern.
← Didn't Know|Knew It →
In the course of auditing Litmus, Inc., the auditors have uncovered a scheme by management to overvalue inventory in order to adhere to bond covenants. The firm approached management and indicated the practice would stop; however, they did not want to correct this year’s financial statements. The auditor should:
In the course of auditing Litmus, Inc., the auditors have uncovered a scheme by management to overvalue inventory in order to adhere to bond covenants. The firm approached management and indicated the practice would stop; however, they did not want to correct this year’s financial statements. The auditor should:
Tap to reveal answer
According to AU-C Section 75: “ The auditor should express an adverse opinion when the auditor, having obtained sufficient appropriate audit evidence, concludes that misstatements, individually or in the aggregate, are both material and pervasive to the financial statements.”
According to AU-C Section 75: “ The auditor should express an adverse opinion when the auditor, having obtained sufficient appropriate audit evidence, concludes that misstatements, individually or in the aggregate, are both material and pervasive to the financial statements.”
← Didn't Know|Knew It →
In the formation of a financial statement opinion, the auditor would least likely evaluate whether:
In the formation of a financial statement opinion, the auditor would least likely evaluate whether:
Tap to reveal answer
When forming an audit opinion of financial statements, the auditor is least likely to evaluate whether earnings forecasts made by investors are met.
When forming an audit opinion of financial statements, the auditor is least likely to evaluate whether earnings forecasts made by investors are met.
← Didn't Know|Knew It →
Of the following factors, which should most influence an auditor’s decision to modify the audit opinion of an issuer’s financial statements?
Of the following factors, which should most influence an auditor’s decision to modify the audit opinion of an issuer’s financial statements?
Tap to reveal answer
The effect of a misstatement on the financial statements taken as a whole should most likely influence an auditor’s decision to modify the audit opinion.
The effect of a misstatement on the financial statements taken as a whole should most likely influence an auditor’s decision to modify the audit opinion.
← Didn't Know|Knew It →
John Ryan, CPA needs to research guidance for the engagement of his client. The client is a private unaudited non-issuer and wants a compilation completed. In which of the following sections of various literature sources would John find relevant guidance?
John Ryan, CPA needs to research guidance for the engagement of his client. The client is a private unaudited non-issuer and wants a compilation completed. In which of the following sections of various literature sources would John find relevant guidance?
Tap to reveal answer
AR-C is a section of the AICPA's guidance on SSARS. As this engagement is a compilation for an unaudited non-issuer, it would be considered SSARS.
AR-C is a section of the AICPA's guidance on SSARS. As this engagement is a compilation for an unaudited non-issuer, it would be considered SSARS.
← Didn't Know|Knew It →
Which statement is true regarding a compilation report?
Which statement is true regarding a compilation report?
Tap to reveal answer
AR-C Section 60 of the identifies “General Principles for Engagements Performed in Accordance with Statements on Standards for Accounting and Review Services. Compilation Engagements are required to comply with this section.
AR-C Section 60 of the identifies “General Principles for Engagements Performed in Accordance with Statements on Standards for Accounting and Review Services. Compilation Engagements are required to comply with this section.
← Didn't Know|Knew It →
Alfa Inc. operates a chain of restaurants in highly populated tourist destinations in the southern United States. Because of recent events, beyond the control of management, it is likely that Alfa will not survive the year. The auditors should report Alfas situation as
Alfa Inc. operates a chain of restaurants in highly populated tourist destinations in the southern United States. Because of recent events, beyond the control of management, it is likely that Alfa will not survive the year. The auditors should report Alfas situation as
Tap to reveal answer
An emphasis of matter paragraph is used to support the auditor’s judgment concerning an event that needs to be highlighted. An emphasis of matter paragraph is required when the auditor has doubts about the entity's ongoing concern.
An emphasis of matter paragraph is used to support the auditor’s judgment concerning an event that needs to be highlighted. An emphasis of matter paragraph is required when the auditor has doubts about the entity's ongoing concern.
← Didn't Know|Knew It →