CPA Auditing and Attestation

CPA Auditing and Attestation practice questions, page 31 of 41, with answer review and explanations.

Question 151

Management of Hill Company has decided not to account for a material transaction in accordance with the provisions of an FASB Standard. In setting forth its reasons in a note to the financial statements, management has clearly demonstrated that due to unusual circumstances the financial statements presented in accordance with the FASB Standard would be misleading. The auditor's report should include a separate explanatory paragraph and contain a(an):

  1. "Except for" qualified opinion.
  2. "Subject to" qualified opinion.
  3. Adverse opinion.
  4. Unqualified opinion.

Question 152

A former client requests a predecessor auditor to reissue an audit report on a prior period's financial statements. The financial statements are not restated and the report is not reviseD. What date(s) should the predecessor auditor use in the reissued report?

  1. The date of the prior-period report.
  2. The date of the client's request.
  3. The date of reissue.
  4. The dual-dates. A

Question 153

Does an auditor make the following representations explicitly or implicitly when issuing the standard auditor's report on comparative financial statements?

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

Question 154

An auditor may issue a qualified opinion under which of the following circumstances?

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

Question 155

Grant Company's financial statements adequately disclose uncertainties that concern future events, the outcome of which are not susceptible of reasonable estimation. The auditor's report should include a (an):

  1. Unqualified opinion.
  2. "Subject to" qualified opinion.
  3. "Except for" qualified opinion.
  4. Adverse opinion.