AC591 Week 1 Online Quiz - AC591 Week 1 Online Quiz 1....

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
AC591 Week 1 Online Quiz 1. Question: Jules, CPA, is reporting on comparative financial statements, but Shah, CPA conducted the previous year's audit. Which of the following is not true in this situation? Your Answer: Dual dating may be used to indicate the appropriate dates for each audit. CORRE CT If Shah's report is not presented, the introductory paragraph should be modified to describe this situation. If Shah's report was qualified due to a scope limitation, Jules may still issue an unqualified opinion on the current year's financial statements. If Shah's report will be presented, management will need to provide a representation letter to Shah. Instructor Explanation: Choice "a" is correct. Dual dating is used when there is a subsequent event occurring after the original date of the auditor's report, and the auditor wishes to extend responsibility only for the one event. It is not used for comparative financial statements (the date appropriate for the most recent audit is used in this case). Choice "b" is incorrect. The introductory paragraph would be modified to indicate that the previous statements were audited by other auditors. The paragraph should also include the date of the report, the type of opinion, and the reasons if the opinion was other than unqualified. Choice "c" is incorrect. Different opinions may be issued for the different years presented. Choice "d" is incorrect. Shah will be required to obtain a letter of representation from management in this situation. Points Received: 10 of 10 Comments: 2. Question: An auditor is unable to complete a procedure during an audit. Based on this situation, which opinion is least likely to be rendered? Your Answer: An unqualified opinion. A qualified opinion. An adverse opinion. CORRE CT A disclaimer of opinion. Instructor Explanation: Choice “c” is correct. An adverse opinion is rendered when there is a departure from GAAP, which is not the case in this question. Choice “a” is incorrect. An unqualified opinion would be rendered if the effect on the financial statements were immaterial, or if acceptable alternative procedures could be performed. Choice “b” is incorrect. A qualified opinion may be issued due to a material scope limitation. Choice “d” is incorrect. A disclaimer of opinion may be issued due to a highly material scope limitation.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Points Received: 10 of 10 Comments: 3. Question: During an audit, the auditor notes that the client’s financial statements are not in conformity with GAAP regarding the recording of leases. Based on this situation, which opinion is least likely to be rendered? Your Answer: An unqualified opinion. A qualified opinion. An adverse opinion. A disclaimer of
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 11/20/2011 for the course ACCT 591 591 taught by Professor Browman during the Spring '11 term at Keller Graduate School of Management.

Page1 / 6

AC591 Week 1 Online Quiz - AC591 Week 1 Online Quiz 1....

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online