1. When there is other information in documents containing audited financial statements and the auditors report, the auditor should

Group of answer choices

Perform inquiry and analytical procedures to ascertain whether the other information is reasonable

Perform the appropriate substantive auditing procedures to corroborate the other information

Add an other-matter paragraph to the auditors report referencing the other information

Read the other information to identify material inconsistencies, if any, with the audited financial statements

2.

An auditor would express an unmodified opinion with an emphasis-of-matter paragraph added to the report for:

	A justified change in accounting principle	An unjustified change in accounting principle	A justified change in accounting estimate
I	No	Yes	Yes
II	Yes	Yes	No
III	Yes	No	No
IV	No	No	Yes

3.

Which of the following statements regarding confirmations of accounts receivable is correct?

Group of answer choices

If a CPA does not receive responses to customers who were sent a negative confirmation, they should follow up with a positive confirmation within a reasonable amount of time.

Negative confirmations should be used only when the risk of material misstatement is low.

Positive confirmations are used when the customer needs to respond that their account balance is actually higher than stated.

A CPA should use negative confirmations only when they believe that accounts receivables may be overstated.