ACCT 401 - Ch. 3 - UTM - Dr.
Geddie fully solved &
updated
What are the three options available to the primary auditor
responsible for the opinion (principal auditor), and when should
each be used? - answer (1) No reference is made to the other
auditor, (2) Issue a shared opinion or report, (3) Qualify the opinion
What is meant by reports involving the use of other auditors? -
answer Another CPA firm has performed part of the audit.
The option "no reference is made to the other auditor" should be
used when:
A. the principal auditor has thoroughly reviewed the other auditor's
work.
B. the other auditor is known or closely supervised.
C. the other auditor audited an immaterial portion of the statement.
D. All of the above. - answer D. All of the above
The option to "issue a shared opinion in which reference is made to
the other auditor" should be used when:
A. the auditors agree that a disclaimer of opinion is needed.
B. it is practical to review the work of the other auditor.
C. the portion of the financial statements audited by the other CPA
is immaterial in relation to the total.
D. All of the above.
, E. None of the above. - answer E. None of the above
The standard unmodified report for a non-public entity under AICPA
auditing standards and the standard unqualified report for a public
company under PCAOB auditing standards are very similar in
substance.
1. The introductory paragraphs are similar, although the
public company report includes what?
2. In contrast, the report for the
non-public entity has what that is different than the report for the
public entity? - answer 1. Includes the responsibilities of
management and the auditor
2. It has separate paragraphs for management's and the auditor's
responsibility.
The scope paragraphs in each report are similar. However, there are
differences in the description of the ? - answer nature of the
auditor's testing
The report for the non-public company indicates that the procedures
are based on what? - answer Based on the auditor's judgment and
consider the risks of material misstatement.
The report for which kind of company also indicates that the auditor
considers internal control in designing the audit procedures and not
for the purpose of expressing an opinion on internal control? -
answer The report for the non-public company
Geddie fully solved &
updated
What are the three options available to the primary auditor
responsible for the opinion (principal auditor), and when should
each be used? - answer (1) No reference is made to the other
auditor, (2) Issue a shared opinion or report, (3) Qualify the opinion
What is meant by reports involving the use of other auditors? -
answer Another CPA firm has performed part of the audit.
The option "no reference is made to the other auditor" should be
used when:
A. the principal auditor has thoroughly reviewed the other auditor's
work.
B. the other auditor is known or closely supervised.
C. the other auditor audited an immaterial portion of the statement.
D. All of the above. - answer D. All of the above
The option to "issue a shared opinion in which reference is made to
the other auditor" should be used when:
A. the auditors agree that a disclaimer of opinion is needed.
B. it is practical to review the work of the other auditor.
C. the portion of the financial statements audited by the other CPA
is immaterial in relation to the total.
D. All of the above.
, E. None of the above. - answer E. None of the above
The standard unmodified report for a non-public entity under AICPA
auditing standards and the standard unqualified report for a public
company under PCAOB auditing standards are very similar in
substance.
1. The introductory paragraphs are similar, although the
public company report includes what?
2. In contrast, the report for the
non-public entity has what that is different than the report for the
public entity? - answer 1. Includes the responsibilities of
management and the auditor
2. It has separate paragraphs for management's and the auditor's
responsibility.
The scope paragraphs in each report are similar. However, there are
differences in the description of the ? - answer nature of the
auditor's testing
The report for the non-public company indicates that the procedures
are based on what? - answer Based on the auditor's judgment and
consider the risks of material misstatement.
The report for which kind of company also indicates that the auditor
considers internal control in designing the audit procedures and not
for the purpose of expressing an opinion on internal control? -
answer The report for the non-public company
