Legal proceedings that might jeopardize the entity’s ability to operate

Legal proceedings that might jeopardize the entity’s ability to operate

The following will usually result in a modified report but will not affect the auditor’s opinion, except a

The occurrence of uninsured catastrophe. If the auditor concludes that the fraud or error has a material effect on the financial statements and has not been properly corrected in the financial statements, the auditor should issue a: a. Unqualified opinion with explanatory paragraph. Qualified or disclaimer of opinion. Qualified or adverse opinion. Adverse or disclaimer of opinion. If the auditor is precluded by the entity from obtaining evidence to evaluate whether fraud or error that may be material to the financial statements has, or is likely to have, occurred, the auditor should issue a (n): a. Unqualified opinion with explanatory paragraph. Qualified or adverse opinion. Qualified or disclaimer of opinion. Adverse or disclaimer of opinion.

Addressee d

In which of the following circumstances would an auditor usually choose between expressing a qualified opinion or disclaiming an opinion? Departure from generally accepted accounting principles b. Inadequate disclosure of accounting policies c. Inability to obtain sufficient competent evidential matter d. Unreasonable justification for a change in accounting principle PSA 700 – The Auditor’s Report on Financial Statements 37. The element of the auditor’s report that distinguishes it from reports that might be issued by others is a. Title c. Auditor’s signature b. Opinion paragraph 38. The financial statements audited by the auditor are identified in the a. Opening paragraph c. Opinion paragraph b. Scope paragraph d. All of the above. Which of the following statements can be found on the scope paragraph of the standard audit report? Continue Reading Legal proceedings that might jeopardize the entity’s ability to operate