88%(8)7 out of 8 people found this document helpful
This preview shows page 1 - 4 out of 11 pages.
Question 1A misstatement in the financial statements can be considered material if knowledge of the misstatement will affect a decision ofSelected Answer:a reasonable user of the financial statements.Answers: an accountant.a reasonable user of the financial statements.the PCAOB.the SEC.Question 2 4 out of 4 pointsAll of the following are causes for the addition of an explanatory paragraph under both AICPA and PCAOB standards exceptforQuestion 3 4 out of 4 pointsAll of the following would require an emphasis of matter paragraph exceptfor
Question 4 4 out of 4 pointsIf most or all users' decisions that are based on the financial statements are likely to be significantly affected, the materiality level isQuestion 5 4 out of 4 pointsIf there is a deviation in the statements' preparation in accordance with GAAP and another accounting principle was applied on a basis that was notconsistent with that of the preceding year,Selected Answer:more than one modification should be included in the report.Answers: the auditor must choose which modification to include in the audit report.more than one modification should be included in the report.only the most material modification can be disclosed.none of the above.Question 6 4 out of 4 points
In which of the following circumstances would an auditor most likely express an adverse opinion?