3. If management insists on financial statement disclosures that the auditor finds unacceptable, the auditor can do all but which of the following?oA. Issue an adverse audit report.B. Issue a disclaimer of opinion.C. Withdraw from the engagement.D. Issue a qualified audit report.ooo4. Which of the following statements is most correct regarding errors and fraud?oo
oo5. Professional skepticism requires auditors to possess a(n) ______ mind.oooo6. The auditor has no responsibility to plan and perform the audit to obtain reasonable assurance that misstatements, whether caused by errors or fraud, that are not ________ are detected.oooo7. Which of the following would most likely be deemed a direct-effect illegal act?oA. Violation of federal employment laws.B. Violation of federal environmental regulations.C. Violation of federal income tax laws.D. Violation of civil rights laws.ooo8. Which of the following is the auditor least likely to do when aware of an illegal act?o
ooo9. The auditor gives an audit opinion on the fair presentation of the financial statements and associates his or her name with it when, on the basis of adequate evidence, the auditor concludes that the financial statements are unlikely to mislead:oooo10. When engaged to audit the financial statements, it is acceptable for the auditor to draft: The client’s financial statements The footnotes to the client’s financial statementsoooo
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- Spring '08
- Accounting, Auditor's report