Notes This preview shows page 2 - 4 out of 8 pages. [6] In which of the following situations would an auditor ordinarily choosebetween expressing a qualified opinion and an adverse opinion?A. The auditor did not observe the entity’s physical inventory and isunable to become satisfied as to its balance by other auditing procedures.B. The financial statements fail to disclose information that is required bythe applicablereporting framework.C. The auditor is asked to report only on the entity’s balance sheet andnot on the other basicfinancial statements.D. Events disclosed in the financial statements cause the auditor to havesubstantial doubt about the entity’s ability to continue as a goingconcern. [7] An auditor expresses an adverse opinion if Get answer to your question and much more [8] In which of the following circumstances would an auditor usuallychoose between expressing a qualified opinion or disclaiming an opinion? Get answer to your question and much more [9] Under which of the following circumstances would a disclaimer ofopinion not beappropriate? Get answer to your question and much more physical inventories or apply alternative procedures to verify theirbalances.B. The auditor is unable to determine the amounts associated with fraudcommitted by theclient’s management.C. The financial statements fail to contain adequate disclosure concerningrelated partytransactions.D. The client refuses to permit its attorney to furnish informationrequested in a letter of audit inquiry.[10] An auditor most likely would review an entity’s periodic accountingfor the numericalsequence of shipping documents and invoices to support management’sfinancial statementassertion ofA. Occurrence.B. Rights and obligations.C. Valuation and allocation.D. Completeness. [11] Which of the following statements about audit evidence is true? Get answer to your question and much more Upload your study docs or become a Course Hero member to access this document Upload your study docs or become a Course Hero member to access this document End of preview. Want to read all 8 pages? Upload your study docs or become a Course Hero member to access this document [1232]In which of the following situations would an auditor ordinarily choose between expressing aqualified opinion or an adverse opinion?A. The auditor did not observe the entity's physical inventory and is unable to become satisfied as toits balance by other auditing procedures.B. The financial statements fail to disclose information that is required by generally acceptedaccounting principles.C. The auditor is asked to report only on the entity's balance sheet and not on the other basic financialstatements.D. Events disclosed in the financial statements cause the auditor to have substantial doubt about theentity's ability to continue as a going concern.•Answer (A) is incorrect because a scope limitation is not a basis for an adverse opinion.•Answer (B) iscorrect. Departures from GAAP, including inadequate disclosures, may result ineither a qualified or an adverse opinion. The auditor must exercise judgment as to the materialityof the departure, weighing factors such as dollar magnitude, significance to the entity,pervasiveness of misstatements, and impact on the statements taken as a whole (AU 508). If the [6] In which of the following situations would an auditor ordinarily choosebetween expressing a qualified opinion and an adverse opinion?A. The auditor did not observe the entity’s physical inventory and isunable to become satisfied as to its balance by other auditing procedures.B. The financial statements fail to disclose information that is required bythe applicablereporting framework.C. The auditor is asked to report only on the entity’s balance sheet andnot on the other basicfinancial statements.D. Events disclosed in the financial statements cause the auditor to havesubstantial doubt about the entity’s ability to continue as a goingconcern. In order to continue enjoying our site, we ask that you confirm your identity as a human. Thank you very much for your cooperation. In which of the following situations would an auditor ordinarily choose between expressing a qualified opinion or an adverse opinion quizlet?If the auditor concludes that management's estimate is unreasonable and that its effect is to cause the financial statements to be materially misstated, the auditor should express a qualified or an adverse opinion.
When should an auditor express a qualified opinion?. 29 If the auditor concludes that a matter involving a risk or an uncertainty is not adequately disclosed in the financial statements in conformity with generally accepted accounting principles, the auditor should express a qualified or an adverse opinion. .
In which of the following circumstances would auditors be most likely to express an adverse opinion?In which of the following circumstances would auditors be most likely to express an adverse opinion? The financial statements are not in accordance with generally accepted accounting principles regarding the capitalization of leases.
When an auditor expresses an adverse opinion the opinion section should include?09 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.
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In which of the following situations would an auditor ordinarily choose between expressing a qualified opinion and an adverse?
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