Question

Audit Analysis

21-1. An auditor has issued a standard report on the comparative financial statements of two fiscal years;
this report will have . . .
a. a single date with a single opinion covering a single two-year period.
b. a single date with a single opinion covering two single-year periods.
c. two dates with two opinions covering a single two-year period.
d. two dates with two opinions covering two single-year periods.

21-2. If the “Basis” section in an auditor’s report on a nonpublic client’s financial statements contains
two paragraphs, the auditor apparently . . .
a. did not issue an unmodified opinion.
b. was engaged to communicate key audit matters.
c. issued a report with a required emphasis-of-matter paragraph.
d. issued a report with a discretionary emphasis-of-matter paragraph.

21-3. Which of the following best describes the conclusion expressed in an auditor’s report containing a
qualified opinion due to a single FRF departure?
a. That because of one matter, the financial statements might not materially conform with the FRF.
b. That because of one matter, the financial statements do not materially conform with the FRF.
c. That except for one matter, the financial statements may materially conform with the FRF.
d. That except for one matter, the financial statements materially conform with the FRF.

Answer 1

21-1. Answer;Option-b

Auditor express single opinion on single financial statements that is the current financial year but for the comparison purpose last year data also have to present in financial statement which is useful for the purpose of analysis and to know the growth of the organization,but on that auditor did not express any opinion.Sometimes last year auditor may not be the same auditor.Soif new auditor is appointed how can he express his opinion without auditing,he just shows the last year opinion but he didnot express through audit.

21-2.Answer;Option-b

21-3.Answer;Option-c