AUD

AUD practice questions, page 9 of 41, with answer review and explanations.

Question 41

When disclaiming an opinion due to a client-imposed scope limitation, an auditor should indicate in a separate paragraph why the audit did not comply with generally accepted auditing standards. The auditor should also omit the:

  1. Option A
  2. Option B
  3. Option C
  4. Option D

Question 42

An auditor decides to issue a qualified opinion on an entity's financial statements because a major inadequacy in its computerized accounting records prevents the auditor from applying necessary procedures. The opinion paragraph of the auditor's report should state that the qualification pertains to:

  1. A client-imposed scope limitation.
  2. A departure from generally accepted auditing standards.
  3. The possible effects on the financial statements.
  4. Inadequate disclosure of necessary information.

Question 43

When an auditor qualifies an opinion because of inadequate disclosure, the auditor should describe the nature of the omission in a separate explanatory paragraph and modify the:

  1. Option A
  2. Option B
  3. Option C
  4. Option D

Question 44

An entity changed from the straight-line method to the declining balance method of depreciation for all newly acquired assets. This change has no material effect on the current year's financial statements, but is reasonably certain to have a substantial effect in later years. If the change is disclosed in the notes to the financial statements, the auditor should issue a report with a(an):

  1. "Except for" qualified opinion.
  2. Explanatory paragraph.
  3. Unqualified opinion.
  4. Consistency modification.

Question 45

If a publicly held company issues financial statements that purport to present its financial position and results of operations but omits the statement of cash flows, the auditor ordinarily will express a(an):

  1. Disclaimer of opinion.
  2. Qualified opinion.
  3. Review report.
  4. Unqualified opinion with a separate explanatory paragraph.