AUD

AUD practice questions, page 17 of 41, with answer review and explanations.

Question 81

An auditor expressed a qualified opinion on the prior year's financial statements because of a lack of adequate disclosure. These financial statements are properly restated in the current year and presented in comparative form with the current year's financial statements. The auditor's updated report on the prior year's financial statements should:

  1. Be accompanied by the auditor's original report on the prior year's financial statements.
  2. Continue to express a qualified opinion on the prior year's financial statements.
  3. Make no reference to the type of opinion expressed on the prior year's financial statements.
  4. Express an unqualified opinion on the restated financial statements of the prior year.

Question 82

Comparative financial statements include the financial statements of the prior year that were audited by a predecessor auditor whose report is not presented. If the predecessor's report was qualified, the successor should:

  1. Indicate the substantive reasons for the qualification in the predecessor auditor's opinion.
  2. Request the client to reissue the predecessor's report on the prior year's statements.
  3. Issue an updated comparative audit report indicating the division of responsibility.
  4. Express an opinion only on the current year's statements and make no reference to the prior year's statements.

Question 83

An auditor has previously expressed a qualified opinion on the financial statements of a prior period because of a departure from generally accepted accounting principles. The prior-period financial statements are restated in the current period to conform with generally accepted accounting principles. The auditor's updated report on the prior-period financial statements should:

  1. Express an unqualified opinion concerning the restated financial statements.
  2. Be accompanied by the original auditor's report on the prior period.
  3. Bear the same date as the original auditor's report on the prior period.
  4. Qualify the opinion concerning the restated financial statements because of a change in accounting principle.

Question 84

Which of the following statements is not true regarding the auditor's responsibility for subsequent events?

  1. The auditor has an active responsibility to make continuing inquiries between the date of the auditor's report and the date on which the report is submitted.
  2. The auditor has an active responsibility to make continuing inquiries between the date of the financial statements and the date of the auditor's report.
  3. The auditor has an active responsibility to make continuing inquiries between the date of the financial statements and the date on which sufficient appropriate audit evidence has been obtained.
  4. The auditor has no active responsibility to make continuing inquiries after the date of the auditor's report.

Question 85

Which of the following procedures would an auditor most likely perform to obtain evidence about the occurrence of subsequent events?

  1. Confirming a sample of material accounts receivable established after year-end.
  2. Comparing the financial statements being reported on with those of the prior period.
  3. Investigating personnel changes in the accounting department occurring after year-end.
  4. Inquiring as to whether any unusual adjustments were made after year-end.