Kahoot Quiz on Audit Opinion

Question 1

Which situation will not result in modification of the auditor’s report because of a scope limitation?

Answer 1

Reliance placed on the report of another auditor.

Question 2

Auditors has not observed the physical inventory which is material, the effect is auditors:

Answer 2

will express a qualified audit opinion. (limitation of scope and only 1 area is involved)

Question 3

An auditor would issue an adverse opinion if:

Answer 3

The statements as a whole do not fairly present the financial condition (normally when departure from the GAAP occurs)

Question 4

If the principal auditor decides to make reference to the component auditor, the opinion section must specify:

Answer 4

The portion of the FS examined by the other auditor.

Question 5

An auditor must disclaim an opinion when the auditor lacks independence.

Answer 5

True

Question 6

A basic assumption that underlies financial reporting is that an entity will continue as a going concern.

Answer 6

True

Question 7

A going concern issue requires an explanatory para to be added to the standard unqualified audit report.

Answer 7

True.