ACC 411 EXAM 1 QUESTIONS AND ANSWERS
Standard unmodified opinion audit report condition 1 - CORRECT ANSWER✅✅All statements— balance
sheet, and income statement, statements of changes in stock or equity and statement of cash flow, as
well as required disclosures are included in the financial statements
Standard unmodified opinion audit report condition 2 - CORRECT ANSWER✅✅Sufficient appropriate
evidence has been accumulated, and the auditor has conducted the engagement in a manner that
enables him or her to conclude that the audit was performed in accordance applicable auditing
standards
Standard unmodified opinion audit report condition 3 - CORRECT ANSWER✅✅The financial statements
are presented fairly in all material respect and accordance with US, generally accepted accounting
principles or other appropriate accounting framework. This also means the adequate disclosures have
been included in the footnotes and other parts of the financial statements.
Standard unmodified opinion audit report condition 4 - CORRECT ANSWER✅✅There are no
circumstances, requiring the addition of an emphasis of matter paragraph or modification of the
wording or auditor's opinion in the report
Standard Unmodified Opinion - CORRECT ANSWER✅✅the four conditions have been met
Unmodified opinion audit report with emphasis-of-matter paragraph or nonstandard report wording -
CORRECT ANSWER✅✅a complete audit took place with satisfactory results and financial statements
are fairly presented, but the auditor believes that it is important or is required to provide additional
information
Qualified Opinion - CORRECT ANSWER✅✅The auditor concludes that the overall financial statements
are fairly presented, but the scope of the audit has been materially restricted or applicable accounting
standards were not followed in preparing the financial statements.
Adverse Opinion - CORRECT ANSWER✅✅the auditor concludes that the financial statements are not
fairly presented
Standard unmodified opinion audit report condition 1 - CORRECT ANSWER✅✅All statements— balance
sheet, and income statement, statements of changes in stock or equity and statement of cash flow, as
well as required disclosures are included in the financial statements
Standard unmodified opinion audit report condition 2 - CORRECT ANSWER✅✅Sufficient appropriate
evidence has been accumulated, and the auditor has conducted the engagement in a manner that
enables him or her to conclude that the audit was performed in accordance applicable auditing
standards
Standard unmodified opinion audit report condition 3 - CORRECT ANSWER✅✅The financial statements
are presented fairly in all material respect and accordance with US, generally accepted accounting
principles or other appropriate accounting framework. This also means the adequate disclosures have
been included in the footnotes and other parts of the financial statements.
Standard unmodified opinion audit report condition 4 - CORRECT ANSWER✅✅There are no
circumstances, requiring the addition of an emphasis of matter paragraph or modification of the
wording or auditor's opinion in the report
Standard Unmodified Opinion - CORRECT ANSWER✅✅the four conditions have been met
Unmodified opinion audit report with emphasis-of-matter paragraph or nonstandard report wording -
CORRECT ANSWER✅✅a complete audit took place with satisfactory results and financial statements
are fairly presented, but the auditor believes that it is important or is required to provide additional
information
Qualified Opinion - CORRECT ANSWER✅✅The auditor concludes that the overall financial statements
are fairly presented, but the scope of the audit has been materially restricted or applicable accounting
standards were not followed in preparing the financial statements.
Adverse Opinion - CORRECT ANSWER✅✅the auditor concludes that the financial statements are not
fairly presented
