Auditing & Attestation Mini Exam 26 — AUD — Auditing & Attestation Mini Exams

Questions in this quiz (10)

1. Which of the following is NOT a required element of an audit report for a nonpublic company under AICPA standards?

   • A statement that the audit was conducted in accordance with GAAS.
   • Identification of the financial reporting framework used.
   • A statement regarding the auditor’s independence.
   • A detailed listing of all audit procedures performed.

2. In a report on the application of accounting principles, the auditor’s opinion is typically:

   • An opinion on the fairness of the financial statements.
   • An opinion on whether the accounting principles are appropriate in the circumstances.
   • An opinion on internal control effectiveness.
   • An opinion on compliance with laws and regulations.

3. When a client has a material misstatement that is not pervasive, the auditor should:

   • Issue an unmodified opinion.
   • Issue a qualified opinion.
   • Issue an adverse opinion.
   • Issue a disclaimer of opinion.

4. Which of the following is a characteristic of a disclaimer of opinion?

   • The financial statements are materially misstated.
   • The auditor lacks independence or cannot obtain sufficient appropriate evidence.
   • The financial statements are fairly presented.
   • The auditor disagrees with management over accounting policies.

5. An auditor is issuing a report on compliance with contractual agreements. Which of the following is required in such a report?

   • A statement that the entity complied with the specified provisions.
   • A detailed description of all audit procedures performed.
   • A reference to fraud detection responsibilities.
   • A statement regarding the auditor’s independence only.

6. When a client has a scope limitation that is material but not pervasive, the auditor should:

   • Issue an unmodified opinion.
   • Issue a qualified opinion.
   • Issue an adverse opinion.
   • Issue a disclaimer of opinion.

7. In a report on specified elements of a financial statement, the auditor’s opinion is typically:

   • On the financial statements as a whole.
   • On whether the specified elements are fairly presented in accordance with the applicable framework.
   • On internal controls over financial reporting.
   • On compliance with regulatory requirements.

8. Which of the following is NOT a required element of an audit report for a public company under PCAOB standards?

   • A statement that the audit was conducted in accordance with PCAOB standards.
   • Identification of the applicable financial reporting framework.
   • A statement about auditor independence.
   • A detailed explanation of all audit procedures performed.

9. When a client has a material misstatement that is pervasive, the auditor should:

   • Issue an unmodified opinion.
   • Issue a qualified opinion.
   • Issue an adverse opinion.
   • Issue a disclaimer of opinion.

10. An auditor is issuing a report on the application of accounting principles. Which of the following is required?

    • A statement that the accounting principles are appropriate in the circumstances.
    • A description of detailed audit testing procedures.
    • A reference to fraud detection responsibilities.
    • A statement that the auditor is independent.