Question

7- Adverse opinion is:

        a- clean opinion             b- the FS present fairly except .…         c- the FS do not present fairly   

       d- none of the above             

8- Disclaimer opinion is:

        a- clean opinion              b- the FS present fairly except .…              c- the FS do not present fairly

       d- the auditor is unable to express an opinion             

9-Financial statements are:

        a- the responsibility of the company's management         b- the responsibility of the auditor   

        c- the responsibility of the Audit firm   d- none of the above             

10-The responsibility of the auditor is to:

        a – prepare the financial statements         b- express an opinion on these financial statements      

        c- none of the above       

11-According to SOX act the auditor in USA is responsible to prepare additional report about:

        a – the internal control         b- the financial statements          c- the accounting system

        d-none of the above  

12-The audit report should include that the audit is completed in accordance with:

        a –GAAP       b- IFRS       c- GAAS             d-none of the above  

Answer 1

Solution 7:

Adverse opinion is "the FS do not present fairly"

Hence option c is correct.

Solution 8:

Disclaimer opinion is "the auditor is unable to express an opinion"

Hence option d is correct.

Solution 9:

Financial statements are "the responsibility of the company's management"

Hence option a is correct.

Solution 10:

The responsibility of the auditor is to "express an opinion on these financial statements"

Hence option b is correct.

Solution 11:

According to SOX act the auditor in USA is responsible to prepare additional report about "Internal control"

Hence option a is correct.

Solution 12:

The audit report should include that the audit is completed in accordance with "GAAP"

Hence option a is correct.