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D auditor as a result of the specialists findings

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D. Auditor, as a result of the specialist's findings, decides to indicate a division of responsibility with the specialist.ExplanationChoice "B" is correct. When expressing an unmodified opinion, the auditor generally will not refer to the work orfindings of a specialist. The auditor may, however, make reference to a specialist in a departure from anunmodified opinion. The auditor may need the permission of the specialist before referencing the specialist inthe report.Choice "A" is incorrect. Lack of client familiarity with the specialist does not affect the auditor's report. Also, it isthe auditor (not the client) who must be satisfied regarding the specialist's qualifications.Choice "C" is incorrect. The auditor must understand the form and content of the specialist's findings in relationto the representations in the financial statements to be able to review the specialist's work. However, this doesnot affect whether or not the auditor refers to the specialist in the auditor's report.Choice "D" is incorrect. An auditor should not divide responsibility for the audit with a specialist. Further, makingreference to the specialist in an unmodified unqualified report generally is inappropriate.A2 M6Question CPA-06832Which one of the below statements best describes the concept of materiality?A. Information that is not likely to influence the decisions of a reasonable investor.B. Information that meets strict quantitative thresholds.C. Information that directly impacts the income statement.D. Information that is likely to be viewed by a reasonable investor as altering the mix of available information.ExplanationChoice "D" is correct. According to the U.S. Supreme Court, information is material if there is a substantiallikelihood that the information would be viewed by a reasonable investor as having significantly altered the totalmix of available information.Choice "A" is incorrect. Information is material if it is likely to influence the decisions of a reasonable investor.Choice"B" is incorrect. Materialityis not determined by theuse of strict quantitative thresholds.Thedetermination of materiality may differ from client to client. Materiality must be determined using bothquantitative and qualitative factors.Choice "C" is incorrect. Information can be material if it influences the user’s decision about any of the financialstatements.Question CPA-03031Which of the following would an auditor most likely use in determining the auditor's preliminary judgment aboutmateriality?A. The results of the initial assessment of control risk.B. The anticipated sample size for planned substantive tests.
更新请添加微信:qiaoye1999非本店出售 一律不提供更新 禁止倒卖转卖更新请添加微信:qiaoye1999非本店出售 一律不提供更新 禁止倒卖转卖C. The entity's financial statements of the prior year.D. The assertions that are embodied in the financial statements.

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