A1 M3: Forming An Audit Opinion

Question 1

What term is used for non-issuers?

Answer 1

Unmodified; emphasis of matter and other matter

Question 2

What term is used for issuers?

Answer 2

Unqualified; explanatory paragraph

Question 3

In preparing the financial statements, departure from GAAP is ______ if financial statements would be otherwise misleading

Answer 3

Permissible

Question 4

Adverse Opinion

Answer 4

The financial statements do not present fairly due to a GAAP issue

Question 5

The auditor refers to _______ for guidelines on how to perform the Audit

Answer 5

GAAS

Question 6

A GAAP or GAAS issue will result in what kind of opinion?

Answer 6

Qualified Opinion

Question 7

Disclaimer of Opinion

Answer 7

Auditor does not express an opinion due to a GAAS issue

Question 8

The auditor refers to the ______ to evaluate whether the transactions are recorded and reported fairly in the financial statements

Answer 8

Financial Reporting Framework

Question 9

Which opinion statements that the financial statements are presented fairly (clear an opinion)?

Answer 9

Unmodified (unqualified)