AC 432 Final Exam

AC 432 Final Exam - 10. When contrasting a review and a...

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10. When contrasting a review and a compilation, which of the following is true? *A review provides negative assurance and a compilation provides no assurance. 11. Management assertions *implied or expressed representations about the accounts in the financial statements. 12. Management’s classifies a portion of its total debt as a current liability on the balance sheet because it will mature in the current year. This classification is *a presentation and disclosure assertion 13. Due to unusual circumstances, Eagle Company’s financial statements contain a departure from GAAP because compliance would make the statements misleading. The auditor *can give an unqualified opinion as long as the GAAP departure is explained in a separate paragraph 14. An auditor includes a separate paragraph in an otherwise unqualified report to emphasize that the entity being reported upon had significant transactions with related parties. This inclusion of this separate paragraph *is appropriate and would not negate the unqualified opinion 15. An auditor may not issue a qualified opinion when \ *the auditor lacks independence with respect to the audited entity. 16. Per SAS 59, when considering management’s plans related to a going concern situation, which of the following is not a viable plan for dealing with adverse conditions and events? *plans to increase research and development expenditures 17. Which of the following items is NOT responsibility detailed in SAS 59. “The Auditor’s Consideration of an Entity’s Ability to Continue as a Going Concern”? *the auditor must assume responsibility for predicting future conditions or events 18. Without the consent of the client, a CPA should not disclose confidential client information contained in working papers to a *CPA firm that purchased the CPA’s accounting practice 19. The USA Today recently reported that 2005 was a record-breaking year with respect to
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This note was uploaded on 07/06/2008 for the course AC 432 taught by Professor Stefaniak during the Spring '08 term at Alabama.

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AC 432 Final Exam - 10. When contrasting a review and a...

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