A client company has issues that cause substantial doubt regarding the entity s ability to continue...

  
 

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A client company has issues that cause substantial doubt regarding the entity s ability to continue as a going concern. If this is the only major audit issue, which type of opinion will the auditor normally issue? Adverse. Unqualified with explanatory language. Unqualified. Qualified. Which of the following best represents an example of positive requests for year-end accounts receivable confirmations? Letters that are sent to select client customers asking them to review the current balance due by the client as shown on the client s statement and return the letters directly to the auditor indicating whether they agree with the indicated balance. Letters that are sent to select client customers asking them to review the current balance due by the client as shown on the client s statement and then throw the letter away. Letters that are sent to select client customers asking them to review the current balance due by the client as shown on the client s statement and return the letters directly to the auditor only if they disagree with the indicated balance. Letters asking audit clients to rate the service received by the firm, the level of disruption caused by the audit and whether the client disagrees with the opinion received. In which of the following situations would an auditor ordinarily issue an unqualified audit opinion without any report modifications? The auditor wishes to emphasize that the client had significant related party transactions. The auditor complies with only one set of auditing standards. The client issues financial statements that present financial position and results of operations, but omits the statement of cash flows. The auditor has substantial doubt about the client s ability to continue as a going concern, and the circumstances are fully disclosed in the financial statements. Bono and Edge, PC are auditing the financial statements of Pop, Inc. and decide to confirm a sample of accounts receivable. This test is performed by Bono and Edge primarily to substantiate which of the following? 00 Cutoff of sales. Valuation of the allowance for bad debt. Classification of revenues. Existence of accounts receivable. A client company has issues that cause substantial doubt regarding the entity s ability to continue as a going concern. If this is the only major audit issue, which type of opinion will the auditor normally issue? Adverse. Unqualified with explanatory language. Unqualified. Qualified. Which of the following best represents an example of positive requests for year-end accounts receivable confirmations? Letters that are sent to select client customers asking them to review the current balance due by the client as shown on the client s statement and return the letters directly to the auditor indicating whether they agree with the indicated balance. Letters that are sent to select client customers asking them to review the current balance due by the client as shown on the client s statement and then throw the letter away. Letters that are sent to select client customers asking them to review the current balance due by the client as shown on the client s statement and return the letters directly to the auditor only if they disagree with the indicated balance. Letters asking audit clients to rate the service received by the firm, the level of disruption caused by the audit and whether the client disagrees with the opinion received. In which of the following situations would an auditor ordinarily issue an unqualified audit opinion without any report modifications? The auditor wishes to emphasize that the client had significant related party transactions. The auditor complies with only one set of auditing standards. The client issues financial statements that present financial position and results of operations, but omits the statement of cash flows. The auditor has substantial doubt about the client s ability to continue as a going concern, and the circumstances are fully disclosed in the financial statements. Bono and Edge, PC are auditing the financial statements of Pop, Inc. and decide to confirm a sample of accounts receivable. This test is performed by Bono and Edge primarily to substantiate which of the following? 00 Cutoff of sales. Valuation of the allowance for bad debt. Classification of revenues. Existence of accounts receivable.

Answer rating: 100% (QA)

1 Answer a Adverse An auditors adverse opinion is a big red flag An adverse audit report usually ind... View the full answer