Mẹo The auditors report may be addressed to any of the following, except the clients
Mẹo về The auditors report may be addressed to any of the following, except the clients Chi Tiết
Hoàng Đức Anh đang tìm kiếm từ khóa The auditors report may be addressed to any of the following, except the clients được Update vào lúc : 2022-12-04 02:02:12 . Với phương châm chia sẻ Bí kíp Hướng dẫn trong nội dung bài viết một cách Chi Tiết 2022. Nếu sau khi tham khảo Post vẫn ko hiểu thì hoàn toàn có thể lại Comment ở cuối bài để Admin lý giải và hướng dẫn lại nha.AUDIT REPORTS 1. The auditor’s report may be addressed to any of the following, except the client’s a. Stockholders b. Chief executive officer c. Board of directors d. Partners 2. The introductory paragraph of the standard audit report may include the following: a. Identification of the entity whose financial statements have been audited. b. Statement that the financial statements have been audited. c. Title of each of the financial statements that comprise the complete set of financial statements. d. Reference to “basic financial statements” without indicating the title of each of the financial statements. e. Reference to the summary of significant accounting policies and other explanatory notes. f. Specific date and period covered by the financial statements. g. Reference to Philippine Standards on Auditing. Which of the foregoing are specifically required by the applicable standards on auditing to be included or referred to in the introductory paragraph of the standard audit report? a. A, B, D, F, G b. A, B, C, E, F, G c. A, B, C, E, F d. B, C, E, F 3. The purpose of the introductory paragraph in the standard unqualified report is a. to clarify the responsibilities of the auditor b. to identify the financial statements which were audited, and the dates and time periods covered by the report. c. to communicate the responsibilities of management in preparing the financial statements, and to clarify the respective roles of management and the auditor. d. all of the responses are correct. 4. When an entity presents, together with the financial statements, supplementary information that cannot be clearly differentiated from the financial statements because of its nature and how it is presented, such supplementary information a. must be specifically referred to in the introductory paragraph of the auditor’s report b. is covered by the auditor’s opinion c. is referred by adding an emphasis of matter paragraph d. is not covered by the auditor’s opinion 5. Which of the following is an incorrect statement about supplementary information? a. The auditor’s opinion may or may not cover the supplementary information b. It is important for the auditor to be satisfied that any supplementary information that is not covered by the financial statements c. The supplementary information that cannot be differentiated from the financial statements is covered by the auditor’s opinion d. Supplementary information that is presented as an integral part of the financial statements always needs to be specifically referred to in the introductory paragraph of the auditor’s report 6. Which of the following is not specifically referred to in the second paragraph of the standard audit report as management’s responsibilities? a. Designing, implementing and maintaining internal control relevant to the preparation and fair presentation of financial statements. b. Effectiveness and efficiency of operating decisions. c. Selecting and applying appropriate accounting policies. d. Making accounting estimates that are reasonable in the circumstances. 7. Management's responsibility for the financial statements is a. Implicitly represented in the auditor's standard report. b. Explicitly represented in the opening paragraph of the auditor's standard report. c. Explicitly represented in the scope – responsibility of the management paragraph of the auditor's standard report. d. Explicitly represented in the opinion paragraph of the auditor's standard report. 8. The standard audit report refers to GAAS and PFRS in which paragraph(s)? GAAS PFRS a. Scope only Opinion only b. Introductory only Scope and opinion only c. Introductory and scope only Opinion d. Introductory only All paragraphs
Nội dung chính Show- WHO is auditors report addressed to?What are the 4 types of audit reports?Which parties is the auditor expected to address his report?Which of the following parties and audit report should be address?
2|Audit Report 9. The auditor's judgment of whether financial statements are fairly presented is made within in the context of: a. Philippine financial reporting standards. b. control risk. c. attestation standards. d. auditing standards. 10. The auditor’s standard report states that the financial statements are presented fairly a. with reasonable assurance. b. in all material respects. c. without significant errors. d. on a consistent basis. 11. How are other reporting responsibilities addressed within the auditor’s report? a. They should be addressed in a separate section that follows the opinion paragraph. b. They should be addressed within the introductory paragraph. c. They should be addressed within the scope paragraph. d. They should be addressed within the scope paragraph and separately described in a separate paragraph. 12. Which of the following is incorrect regarding the auditor’s signature? a. The auditor’s signature is either in the name of the audit firm, the personal name of the auditor, or both, as appropriate. b. The auditor’s signature is either in the name of the audit firm or the personal name of the auditor, but not both. c. In addition to the auditor’s signature, the auditor may be required to declare the auditor’s professional accountancy designation. d. The auditor’s report filed with the Securities and Exchange Commission (SEC) must be manually signed. 13. Which of the following information is(are) required when an auditor’s report is issued on financial statements to be filed with the Securities and Exchange Commission? I. II. III. IV. V. a. b. c. d.
Audit report is manually signed. Certifying partner to sign his name. Partner’s Tax Identification Number. PRC registration number Accreditation with SEC
1, 2, 3, 4, 5 2, 4, 5 1, 3, 4, 5 2, 3, 4, 5
14. An audit report should be dated as of the a. date the stockholders approve the audited financial statements. b. date of management approving the audited financial statements. c. balance sheet date of the latest period reported on. d. date a letter of audit inquiry is received from the entity’s attorney. 15. Why is the date of the auditor’s report important? a. To have a basis of determining the audit fees to be paid to the auditor. b. The date of the auditor’s report informs the readers that the auditor has considered the effect of events and transactions of which the auditor became aware and that occurred up to that date. c. To emphasize completeness assertion. d. To inform the users of the financial statements that the auditor complied with the applicable Philippine Standards on Auditing. 16. How is the auditor’s report on the financial statements that require final approval by stockholders before such financial statements are issued publicly dated? a. The auditor’s report should be dated coinciding the date of approval of the financial statements by the stockholders. b. The auditor’s report should be dated after the approval of the financial statements by the stockholders. c. The date of the auditor’s report coincides the date of approval of the financial statements by the board of directors. d. The audit report should be dual dated, the first date coinciding the approval by the board of directors and the second date to coincide with the approval by the stockholders. 17. The auditor’s address is indicated in the auditor’s report by: a. naming the location in the country where the auditor practices his profession. b. including the complete mailing address of the auditor.
3|Audit Report c. identifying the country from where the auditor had secured his professional license. d. the auditor’s address is omitted in the report. 18. Which of the following is ordinarily true of a modification of the audit report by adding an emphasis of matter paragraph? a. The modification by adding an emphasis of matter paragraph is an “except for” qualification of opinion. b. The emphasis of matter paragraph is a “subject to” qualification of opinion. c. The emphasis of matter paragraph would ordinarily refer to the fact that the auditor’s opinion is not qualified. d. The emphasis of matter paragraph is presented before the opinion paragraph. 19. Salmon Company’s financial statements adequately disclose uncertainties that concern future events, the outcome of which cannot reasonably be estimated. The auditor’s report should include a(an) a. unqualified opinion b. “except for” qualified opinion c. “subject to” qualified opinion d. adverse opinion 20. The paragraphs of the report which is modified for uncertainties are the same as the standard unqualified report. The explanatory paragraph as a form of the modification to describe the uncertainty is added as the a. first paragraph b. last paragraph c. third paragraph with the opinion paragraph last d. second paragraph with the opinion paragraph last 21. An explanatory paragraph following an opinion paragraph that describes an uncertainty is as follows: As discussed in Note X to the financial statements, the company is a defendant in a lawsuit alleging infringement of certain patent rights and claiming damages. Discovery proceedings are in progress. The ultimate outcome of the litigation cannot presently be determined. Accordingly, no provision for any liability that may result upon adjudication has been made in the accompanying financial statements. What type of opinion should the auditor express in this circumstance? a. Unqualified b. Disclaimer c. Qualified d. adverse 22. The audit report issued by Lozano and Co., CPAs, included the following paragraph that followed the opinion paragraph: Without qualifying our opinion we draw attention to Note 11 to the financial statements. The Company is the defendant in a lawsuit alleging infringement of certain patent rights . . . This paragraph is considered: a. an inappropriate reporting practice b. an additional information to be a part of the notes to financial statements. c. an emphasis of matter regarding uncertainty which is considered an acceptable reporting practice d. inappropriate because it contradicts the unqualified opinion issued by the auditor 23. In extreme cases such as situations involving multiple uncertainties that are significant to the financial statements, the auditor a. may consider to express a disclaimer of opinion b. may qualify his opinion instead of issuing an unqualified opinion with emphasis of matter paragraph c. may issue an adverse opinion because of their significance d. may issue a “subject to” opinion because the situations related to uncertainties 24. A client company has issues that cause substantial doubt regarding the entity's ability to continue as a going concern. If this is the only major audit issue, which type of opinion will the auditor usually refrain from issuing? a. Adverse b. Unqualified with explanatory language c. Clean opinion d. Disclaimer of opinion 25. Which of the following situations, the effect of which is significant, least likely require a decision of whether to issue a qualified or adverse opinion? a. Any disagreement with entity management regarding the acceptability of the accounting policies selected by the management. b. Limitation on the scope of the auditor’s work.
4|Audit Report c. Inadequate disclosures of financial information. d. Unjustified changes in accounting policies. 26. The auditor may continue to express unqualified opinion though there are modifications made in the audit report. Which of the following situations, would the auditor likely modify his opinion? a. The existence of multiple uncertainties that are adequately described in the notes to financial statements. b. The prior year’s financial statements were audited by other CPAs. c. An important subsidiary whose financial statements were included in the consolidated financial statements were audited by other CPAs. d. A substantial doubt about the client’s ability to continue as a going concern that is adequately disclosed in the financial statements. 27. In which of the following situations would qualified opinion be inappropriate? a. Financial statements are materially misstated. b. A doubt that is more than substantial about the ability of the company to continue as a going concern. c. A significant scope limitation. d. The management insisted of not attaching the statement of cash flows. 28. Which of the following is not a reason to issue a modified audit report with opinion other than unqualified opinion? a. The scope of the auditor’s work is restricted by the client. b. The amount of inventories cost as presented in the balance sheet significantly exceeded their market values. c. Certain significant matter is omitted from either the financial statements or notes to financial statements. d. An adequately disclosed significant uncertainty, the resolution of which is dependent upon future events and which may affect the financial statements. 29. Which of the following situations may likely require a modified audit report with modified wordings or an emphasis of matter paragraph? a. A significant uncertainty, not adequately disclosed in the financial statements. b. An audit of inventory is restricted by the client. The auditor was satisfied about the balance of the inventory by doing alternative audit procedures. c. A change in the application of generally accepted accounting principle that is justified. d. A less than substantial doubt regarding the ability of the entity to continue as a going concern. 30. Which of the following circumstances may not result to a disclaimer of opinion? a. A significant scope limitation in auditing the existence of inventories. The inventory amount comprises 75 percent of the total assets of the client. b. The auditor believes that there are multiple uncertainties that are significant to the financial statements. c. The accounts receivable of the client comprises 80 percent of the total assets. The auditor was instructed by the client not to confirm account balances. The auditor, however, was satisfied by the results of alternative audit procedures. d. The auditor’s wife owns very a few number of common shares of the client. 31. Whenever an auditor issues a qualified report, he or she a. must use the term “subject to” in the opinion paragraph. b. may use either the terms “subject to” or “ except for” in the opinion paragraph, depending on the nature of the qualification. c. must use the term “except for” in the opinion paragraph. d. must not use the terms “subject to” or “except for” in the opinion paragraph. 32. The auditor would most likely disclaim his opinion because of a. the client’s failure to present supplementary information required by the FRSC. b. inadequate disclosure of material information. c. the qualification of an opinion by the other auditor of a subsidiary where there is a division of responsibility. d. a client-imposed scope limitation. 33. Whenever the client imposes restrictions on the scope of the audit, the auditor should be concerned about the possibility that management is trying to prevent discovery of misstated information. In such cases, PSA 701 has encouraged the auditor to issue a: a. disclaimer of opinion in all cases. b. qualification of both scope and opinion in all cases. c. disclaimer of opinion, whenever materiality is in question. d. qualification of both the scope and opinion paragraphs, whenever materiality is in question. 34. An explanatory paragraph or modified wordings may be added to the audit report while the same time issuing an unqualified opinion in all cases except when: a. the client has changed an accounting principle with the agreement of the auditor.
5|Audit Report b. there is an immaterial departure from PFRS to ensure fair presentation with the agreement of the auditor. c. the audit opinion is partly based on the work of another auditor. d. the audit work has been materially limited by management. 35. The most common case in which conditions beyond the client’s and auditor’s control cause a scope restriction is an engagement a. agreed upon after the client’s balance sheet date. b. where client will not allow the auditor to confirm receivables for fear of offending its customers. c. where auditor does not have enough staff to audit all of client’s foreign subsidiaries satisfactorily. d. where client is going through a bankruptcy. 36. An audit report contains the following paragraph: "Because of the inadequacies in the company's accounting records during the year ended June 30, 2008, it was not practicable to extend our auditing procedures to the extent necessary to enable us to obtain certain evidential matter as it relates to classification of certain items in the consolidated statements of operations." This paragraph most likely describes a. A material departure from PFRS requiring a qualified audit opinion. b. An uncertainty that should not lead to a qualified opinion. c. A matter that the auditor wishes to emphasize and that does not lead to a qualified audit opinion. d. A material scope restriction requiring a qualification of the audit opinion. 37. When there is a limitation on the scope of the auditor’s work that requires a modification of the audit report: a. The auditor’s report should either contain a qualified or adverse opinion. b. The auditor’s report may contain an unqualified opinion with an emphasis of matter paragraph that follows the opinion paragraph. c. The auditor’s report should describe the limitation and indicate the possible adjustments to the financial statements that might have been determined to be necessary had the limitation not existed. d. Should always contain a disclaimer of opinion. 38. Which of the following least likely requires an expression of unqualified opinion with modified wordings or an emphasis of matter paragraph? a. The financial statements of prior period, which are presented for comparative purposes, were audited by another CPAs. b. The auditors have substantial doubt about the ability of the entity to continue as a going concern. c. The entity changed the measurement of certain significant transaction from one GAAP to another GAAP. d. The auditors failed to observe physical inventory count; however, the auditor was satisfied that the inventory amount was fairly presented by doing alternative audit procedures. 39. When there is a limitation in the scope of the audit that results to a disclaimer of opinion, the following paragraphs are modified, except: a. Introductory paragraph b. Management’s responsibility for the financial statements c. Auditor’s responsibility d. Auditor’s opinion. 40. The expression of a qualified opinion means that the financial statements, taken as a whole, in all material respects, are a. materially misstated. b. materially misleading. c. presented fairly. d. do not present fairly. 41. When the auditor cannot perform certain required procedures and the amounts are so material that a disclaimer of opinion rather than a qualified opinion is required a. the opinion paragraph will state “do not present fairly”. b. the opinion paragraph will state “present fairly”. c. the scope – auditor’s responsibility paragraph will be deleted. d. the scope paragraph will be unchanged from the standard unqualified opinion. 42. Which of the following indicates a qualified opinion? a. The financial statements do not present fairly in all material respects, the financial position, results of operations, and cash flows in conformity with PFRS. b. The auditor does not express an opinion on the financial statements. c. The financial statements present fairly, in all material respects, the financial position, results of operations, and cash flows in conformity with PFRS. d. Except for the effects of a matter, the financial statements present fairly, in all material respects, the financial position, results of operations, and cash flows in conformity with PFRS.
6|Audit Report 43. When the client is not following PFRS, and the auditor believes that adherence to PFRS would result to misleading statements, the opinion paragraph of the audit report a. must express an adverse opinion. b. must express a qualified opinion. c. should be unqualified with a required explanatory paragraph. d. should be the standard unqualified opinion. 44. In which of the following conditions is an unqualified audit opinion least likely issued? a. The auditor believes that a substantial doubt about the entity's ability to continue as a going concern exists. b. The auditor believes that inventory is valued market values that accurately reflect market conditions and materially exceed cost. c. The audit is conducted with no circumstance or imposed scope limitations. d. PFRS are not consistently applied from year to year. 45. Once the auditor has determined that an exception is material enough to warrant a qualification of his auditor’s report, he must then determine if the exception is sufficiently material to negate an overall opinion. If the auditor is applying this decision process to an exception based on a departure from Philippine financial reporting standards, he is deciding a. Whether to issue an adverse opinion rather than a disclaimer of opinion. b. Whether to issue a disclaimer of opinion rather than a qualified opinion. c. Whether to issue an adverse opinion rather than a qualified opinion. d. Nothing because such a decision process is not applicable to this type of exception. 46. An auditor who is reporting on financial statements that contain a material departure from PFRS should include in his audit report a separate explanatory paragraph and a. not modify the opinion paragraph as long as the departure is adequately disclosed in a footnote. b. disclaim an opinion on the financial statements. c. express a qualified or adverse opinion. d. express a qualified opinion or disclaim an opinion. 47. An auditor should disclose the substantive reasons for expressing an adverse opinion in an explanatory paragraph a. preceding the scope – responsibility of the auditor paragraph. b. between the scope – responsibility of the auditor paragraph, and the opinion paragraph. c. following the opinion paragraph. d. within the notes to the financial statements. 48. If the auditor believes that a required material disclosure is omitted from the financial statements, the auditor should decide between issuing a(n) a. qualified opinion or an adverse opinion. b. disclaimer of opinion or a qualified opinion. c. adverse opinion or a disclaimer of opinion. d. unqualified opinion or a qualified opinion. 49. An auditor is confronted with an exception sufficiently material to warrant departing from the standard wording of an unqualified report. If the exception relates to a departure from the Philippine financial reporting standards, the auditor must decide between a(n) a. adverse opinion and an unqualified opinion. b. adverse opinion and a qualified opinion. c. adverse opinion and a disclaimer of opinion. d. disclaimer of opinion and a qualified opinion. 50. In which of the following situation would a decision of selecting between a qualified or adverse opinions be inappropriate? a. A limitation in the scope of the audit. b. The financial statements are significantly misleading. c. A disagreement between the auditor and the client arose because of capitalization of research and development costs. d. A required disclosure that is significant is omitted from the financial statements.
WHO is auditors report addressed to?
The auditor's report is normally addressed to those for whom the report is prepared. It is often addressed to the shareholders or to those charged with governance of the entity (or to the board of directors of the entity) whose financial statements are being audited.What are the 4 types of audit reports?
They include:. Clean Report or Unqualified Opinion.. Qualified Report or Qualified Opinion.. Disclaimer Report or Disclaimer of Opinion.. Adverse Audit Report or Adverse Opinion..Which parties is the auditor expected to address his report?
The auditor shall make a report to the members of the company on the accounts and financial statements examined by him. The auditor prepares the report after taking into account the provisions of the Companies Act, the accounting standards and auditing standards.Which of the following parties and audit report should be address?
written, as (a) Audit report of a company should be addressed to the shareholders. (b) In case of special audit, the report should be addressed to the Central Government. Tải thêm tài liệu liên quan đến nội dung bài viết The auditors report may be addressed to any of the following, except the clients Audit report Responsibility of auditor Audit opinion
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