Auditing & Attestation Mini Exam 28 — AUD — Auditing & Attestation Mini Exams

Questions in this quiz (10)

1. Which of the following best describes the auditor’s responsibility in a report on specified elements of a financial statement?

   • Express an opinion on the overall financial statements.
   • Provide an opinion on whether the specified elements are fairly presented in accordance with the applicable framework.
   • Evaluate the effectiveness of internal controls.
   • Assess compliance with laws and regulations.

2. 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 the auditor’s independence.
   • A detailed explanation of all audit procedures performed.

3. 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.

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

   • The fairness of the financial statements.
   • Whether the accounting principles are appropriate in the circumstances.
   • The effectiveness of internal controls.
   • Compliance with regulatory requirements.

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

   • The financial statements are fairly presented.
   • The auditor expresses a negative opinion.
   • The auditor is unable to obtain sufficient appropriate audit evidence.
   • The financial statements contain immaterial misstatements.

6. 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 listing of audit procedures performed.
   • A statement about the auditor’s responsibility for fraud detection.
   • A summary of the client’s internal control system.

7. When a client has a material misstatement that is pervasive and refuses to adjust the financial statements, the auditor should:

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

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

   • On the fairness of the complete financial statements.
   • On whether the specified elements are fairly presented in accordance with the applicable framework.
   • On the effectiveness of internal controls.
   • On compliance with laws and regulations.

9. 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 testing procedures.

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

    • A statement that the accounting principles are appropriate in the circumstances.
    • A description of the scope of the audit.
    • A reference to fraud detection responsibilities.
    • A statement about the auditor’s independence.