AUD practice questions, page 28 of 41, with answer review and explanations.
Question 136
An auditor most likely would issue a disclaimer of opinion because of:
Inadequate disclosure of material information.
The omission of the statement of cash flows.
A material departure from generally accepted accounting principles.
Management's refusal to furnish written representations.
Question 137
When an auditor qualifies an opinion because of the inability to confirm accounts receivable by direct communication with debtors, the wording of the opinion paragraph of the auditor's report should indicate that the qualification pertains to the:
Limitation on the auditor's scope.
Possible effects on the financial statements.
Lack of sufficient appropriate audit evidence.
Departure from generally accepted auditing standards.
Question 138
The adverse effects of events causing an auditor to believe there is substantial doubt about an entity's ability to continue as a going concern would most likely be mitigated by evidence relating to the:
Ability to expand operations into new product lines in the future.
Feasibility of plans to purchase leased equipment at less than market value.
Marketability of assets that management plans to sell.
Committed arrangements to convert preferred stock to long-term debt.
Question 139
An auditor was unable to obtain audited financial statements or other evidence supporting an entity's investment in a foreign subsidiary. Between which of the following opinions should the entity's auditor choose?
Adverse and unqualified with an explanatory paragraph added.
Disclaimer and unqualified with an explanatory paragraph added.
Qualified and adverse.
Qualified and disclaimer.
Question 140
Which of the following standards requires a critical review of the work done and the judgment exercised by those assisting in an audit at every level of supervision?