Question

In which of the following circumstances would an auditor not express an unmodified opinion? There has...

In which of the following circumstances would an auditor not express an unmodified opinion?

There has been a material change between periods in accounting principles.

The auditor is unable to obtain audited financial statements of a long-term investee.

The auditor wishes to emphasize an unusually important subsequent event.

Quarterly financial data required by the SEC have been omitted.

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

In case where the auditor is unable to obtain audited financial statements of a long-term investee, the auditor would report a qualified opinion or a disclaimer of opinion but an unmodified opinion cannot be expressed.

In case where Quarterly data required by SEC is omitted or where auditor wishes to emphazise unusally important transaction, the same can be reported by way of emphasis of matter paragraph and will not require issuing a modified opinion.

Further, material change is accounting principles between two periods is a mere dsiclosure and can be provided in an unmodified report itself.

Therefore, second option, "The auditor is unable to obtain audited financial statements of a long-term investee", is the correct option.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
in which if the following circumstances would a qualified opinion be apporpriate? A. The statements are...
in which if the following circumstances would a qualified opinion be apporpriate? A. The statements are not in conformity with generally accepted accounting principles regarding stock options plans and but does not have pervasive effect on the financial statements. B. The statements are not in conformity with generally accepted accounting principles regarding stock options plans and has pervasive effect on the financial statements. C. The auditor has been unable to obtain sufficient competent evidential matter D. The principal auditors decide...
auditor's responsibility section of the standard unmodified opinion audit report under US GAAS states: A. That...
auditor's responsibility section of the standard unmodified opinion audit report under US GAAS states: A. That the audit is designed to obtain reasonable assurance as to whether the financial statements are free of material misstatement whether due to fraud or error B. that the procedures performed were specified by generally accepted auditing standards C. that the financial statement audit includes procedures sufficient to express an opinion on whether the companyÕs internal control over financial reporting is effective D. all of...
1.
Under which of the following circumstances would a disclaimer of opinion be appropriate? A) The...
1.
Under which of the following circumstances would a disclaimer of opinion be appropriate? A) The auditor believes management’s estimates of the useful lives of key assets are unreasonable, but management refuses to change the estimates. B) Management does not provide reasonable justification for a change in accounting principles. C) The chief executive officer is unwilling to sign the management representation letter. D) The auditor believes, with evidence, that the chief executive officer has committed material fraud. 2.The auditor is...
Indicate the type of audit report(s) that would be appropriate in each of the following situations....
Indicate the type of audit report(s) that would be appropriate in each of the following situations. a.   A company has departed from GAAP. b. A company's inventory records were deficient and the auditor was required to satisfy herself that the inventory was properly stated using alternative procedures. She is satisfied that she has sufficient appropriate evidence. c.   In auditing a client, an auditor has determined that substantial doubt exists about an entity's ability to continue as a going concern. d....
For each of the following brief scenarios, assume that you are the CPA reporting on the...
For each of the following brief scenarios, assume that you are the CPA reporting on the client’s non-public financial statements. Using the form included in this problem, describe the reporting circumstance involved, the type or types of opinion possible in the circumstance, and the appropriate report alterations. Since more than one report may be possible in several of the circumstances, a second “type of opinion” and “report alteration” row is added for each circumstance. For example, if a problem does...
19.   Under to PSA 260, those matters that arise from the audit of financial statements and...
19.   Under to PSA 260, those matters that arise from the audit of financial statements and in the opinion of the auditor, are both important and relevant to those charged with governance in overseeing the financial reporting and disclosure process are called a.   Audit matters of governance interest b.   Significant audit matters c.   Auditor findings d.   Material misstatement in the financial statements 20.   Audit matters of governance interest to be communicated to those charged with governance ordinarily include a.   Audit...
Various Reporting Situations. Assume that the auditors encountered the following separate situations when deciding on the...
Various Reporting Situations. Assume that the auditors encountered the following separate situations when deciding on the report to issue for the current-year financial statements. (If the kind of opinion depends on the reason for the scope limitation (if applicable), the degree of materiality, and/or the pervasiveness of the matter discussed, then choose an answer choice that encompasses the two possible opinion types.) The auditors decided that sufficient appropriate evidence could not be obtained to complete the audit of significant investments...
Hi. I want to get feedback on this question. What should i add or remove or...
Hi. I want to get feedback on this question. What should i add or remove or any correction. Boulded written is question and regulat writing is answer. Please guide. Thank you. BACKGROUND Apply audit risk and materiality concepts to address the following circumstances regarding Able & Baker LLP’s audits of the financial statements of Foster Engineering, Inc. 1. Able & Baker LLP auditors are beginning their audit of Foster’s 2017 financial statements. Because of changes in the market and increased...
Evaluating a potential client requires which of the following steps? Question 21 options: 1) Communicate with...
Evaluating a potential client requires which of the following steps? Question 21 options: 1) Communicate with the predecessor auditor. 2) Preplan the audit. 3) Establish the terms of the engagement. 4) None of these. Question 22 (3 points) What factor would most likely would cause a CPA not to accept a new audit engagement? Question 22 options: 1) the prospective client's unwillingness to permit inquiry of its legal counsel 2) the inability to review the predecessor auditor's documentation 3) the...
During the trial, lawyers for the accused said that the men believed that the accounting decisions...
During the trial, lawyers for the accused said that the men believed that the accounting decisions they made were appropriate at the time, and that the accounting treatment was approved by Nortel’s auditors from Deloitte & Touche. Judge Marrocco accepted these arguments. Marrocco added he was “not satisfied beyond a reasonable doubt” that the trio (i.e., Dunn, Beatty, and Gollogly) had “deliberately misrepresented” financial results. Given the facts of the case, do you believe Judge Marrocco’s decision was justified? Explain....
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT