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Auditing and Attestation 1 Class Questions 1 2009 DeVry/Becker Educational Development Corp. All rights reserved. 1. CPA-02304 The fourth standard of reporting requires the auditor's report to contain either an expression of opinion regarding the financial statements taken as a whole or an assertion to the effect that an opinion cannot be expressed. The objective of the fourth standard is to prevent: a. An auditor from expressing different opinions on each of the basic financial statements. b. Restrictions on the scope of the audit, whether imposed by the client or by the inability to obtain evidence. c. Misinterpretations regarding the degree of responsibility the auditor is assuming. d. An auditor from reporting on one basic financial statement and not the others. CPA-02304 Choice "c" is correct. The objective of the fourth reporting standard is to prevent any misinterpretation of the degree of responsibility the auditor assumes when his or her name is associated with financial statements. Choice "a" is incorrect. The auditor may express different opinions on each of the basic financial statements. Choice "b" is incorrect. While the fourth reporting standard may deter deliberate limitation of scope by the client, this is not its objective. Choice "d" is incorrect. An auditor may express an opinion on one financial statement, such as a balance sheet, and not on other related financial statements, as long as the auditor's procedures have not been restricted. 2. CPA-02370 The auditor's standard report should include reference to the United States as the country of origin of: I. The accounting principles used to prepare the financial statements. II. The auditing standards the auditor followed in performing the audit. a. I only. b. II only. c. Both I and II. d. Neither I nor II. CPA-02370 Choice "c" is correct. The auditor's standard report should include reference to the United States as the country of origin of both the accounting principles used to prepare the financial statements and the auditing standards the auditor followed in performing the audit. Choice "a" is incorrect, since the auditor's standard report should include reference to the country of origin of the auditing standards the auditor followed in performing the audit. Choice "b" is incorrect, since the auditor's standard report should include reference to the country of origin of the accounting principles used to prepare the financial statements. Choice "d" is incorrect, since the auditor's standard report should include reference to the country of origin of both the accounting principles used to prepare the financial statements and the auditing standards the auditor followed in performing the audit. Auditing and Attestation 1 Class Questions 2 2009 DeVry/Becker Educational Development Corp. All rights reserved. ... View Full Document

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