Ch. 20 - Auditor Report

Question 1

Unqualified opinion means:

Answer 1

The FS are stated fairly in all material respects

Question 2

What opinion to provide for a limitation of scope that is -

1. pervasive,
2. or not pervasive

Answer 2

1. disclaimer of opinion

2. qualified report

Question 3

Pervasive effects are those that:

Answer 3

1. are not confined to specific accounts or balance
2. represent, or could represent, a substantial portion of the FS
3. For disclosures, are fundamental to the users’ understanding of the FS

Question 4

Opinions to provide for when material misstatements on FS exist that are

1. pervasive
2. not pervasive

Answer 4

1. adverse opinion

2. qualified opinion

Question 5

Emphasis of Matter - why to use

Answer 5

To draw attention to something in the FS that is fundamental to the users’ understanding of the FS

Question 6

Association (in terms of audits) is:

Answer 6

used to indicate the involvement with an enterprise

Question 7

Association (in terms of audits) may arise when:

Answer 7

1. the practitioner perform services

2. the practitioner is requested to consent to the use of the practitioners communication or name, or