Quiz#3 - Quiz # 3 Subject: Date: Student: Auditing and...

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Quiz # 3 Subject: Auditing and Assurance Service Date: Student: 1. What five circumstances are required for a standard unqualified report to be issued? 2. Distinguish between an unqualified report with an explanatory paragraph or modified wording and a qualified report. Give examples when an explanatory paragraph or modified wording should be used in an unqualified opinion.
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The following questions concern audit reports other than unqualified audit reports with standard wording. Choose the best response. 3. A CPA will issue an adverse auditor’s opinion if (1) the scope of the audit is limited by the client. (2) the exception to the fairness of presentation is so material that an “except for” opinion is not justified. (3) the auditor did not perform sufficient auditing procedures to form an opinion on the financial statements taken as a whole. (4) major uncertainties exist concerning the company’s future. 4. An auditor would most likely disclaim an opinion because of (1) the client’s failure to present supplementary information required by the Financial Accounting Standards Board (FASB). (2) inadequate disclosure of material information. (3) a client-imposed scope limitation. (4) the qualification of an opinion by the other auditor of a subsidiary when responsibility has been divided. 5. For the following independent situations, assume that you are the audit partner on the engagement: 1. During your audit of Debold.com, Inc., you conclude that there is a possibility that inventory is materially overstated. The client refuses to allow you to expand the scope of your audit sufficiently to verify whether the balance is actually misstated. 2. You are auditing Woodcolt Linen Services for the first time.Woodcolt has been in
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Quiz#3 - Quiz # 3 Subject: Date: Student: Auditing and...

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