Auditing & Attestation Mini Exam 27 — AUD — Auditing & Attestation Mini Exams

Questions in this quiz (10)

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

   • The financial statements are materially misstated.
   • The auditor is unable to obtain sufficient appropriate audit evidence.
   • The financial statements are fairly presented except for a specific issue.
   • The auditor agrees with management’s accounting policies.

2. In a report on compliance with contractual agreements, the auditor’s responsibility is to:

   • Express an opinion on the fairness of the financial statements.
   • Provide an opinion on whether the entity complied with specified provisions.
   • Evaluate internal control effectiveness.
   • Assess fraud risk.

3. When a client has a scope limitation that is 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 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 about auditor independence.
   • A detailed description of audit procedures performed.

5. An auditor is issuing a report on specified elements of a financial statement. Which of the following is typically included?

   • A statement that the elements are fairly presented in accordance with the applicable framework.
   • A detailed listing of transactions tested.
   • A reference to fraud detection responsibilities.
   • A statement that no audit procedures were performed.

6. When a material uncertainty related to going concern is not properly disclosed, 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 the application of accounting principles, the auditor’s opinion is typically:

   • On the fairness of the financial statements.
   • On whether the accounting principles are appropriate in the circumstances.
   • On internal control effectiveness.
   • On compliance with regulations.

8. Which of the following is a characteristic of an unmodified opinion?

   • The financial statements contain material misstatements.
   • The auditor lacks independence.
   • The financial statements are fairly presented in all material respects.
   • The auditor is unable to obtain sufficient evidence.

9. An auditor is issuing a report on compliance with contractual agreements. Which of the following is typically included?

   • A statement that the entity complied with the specified provisions.
   • A detailed description of audit testing procedures.
   • A disclaimer of responsibility for detecting fraud.
   • A statement about auditor independence only.

10. When a client has a material misstatement that is not pervasive and refuses to correct it, the auditor should:

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