Capstone Exam Latest Study Set Material 2024 Updated Q&A

Capstone Exam Latest Study Set Material 2024 Updated Q&A Audit Report- unqualified Opinion - CORRECT ANSWER-have no reservations concerning the financial statements. This is also known as a clean opinion meaning that the financial statement appear to be presented fairly. Free of material misstataments Audit Report-Qualified Opinion - CORRECT ANSWER-the auditor, having obtained sufficient appropriate audit evi- dence, concludes that misstatements, individually or in the aggre- gate, are material but not pervasive to the financial statements or Audit Report-Disclaimer - CORRECT ANSWER-auditor is unable to express a definite opinon..company lack of providing information not able to completely fulfill task The auditor should express an adverse opinion when the auditor, hav- ing obtained sufficient appropriate audit evidence, concludes that misstate- ments, individually or in the aggregate, are both material and pervasive to the financial statements. Audit Report-Adverse Opinion - CORRECT ANSWER-the financial statements do not fairly present the financial position/ not in accordance with GAAP/fraud Audit Report contains - CORRECT ANSWER-three paragraphs 1. the responsibilties of the auditor and the management of the entity 2. the scope of the audit 3. the auditor's opinion of the entity's financial statement Directors/Management Responsibility - CORRECT ANSWER-Prepare the financial reports that gives true and fair view in accordance to accounting standards including internal control AICPA Code of Professional Conduct - CORRECT ANSWER-1.Public Interest-act with honesty and in fulfillment of their obligation to the public to provide sound, ethical service 2.Standards of Integrity-trust 3. Data standards-accountants are obligated to obtain sufficient relevant data to support a reasonable basis for conclusions or recommendation 4. Standards of Objectivity &independence- objectivity is a state of mind to be impartial/intellectualluy honest and free of conflicts of interest. Requires accountants to be independent 5 Standards of Due Care- Discharge their Professional responsibility to the best of their interest Auditor's Withdrawal form Engagement - CORRECT ANSWER-Depends on A. the implications about the integrity of management