Question 11 (1 point) When a client will not permit inquiry of outside legal counsel, the audit report will ordinarily contain a(n) O 1) disclaimer of opinion O2) "except for" qualified opinion regarding a departure from generally accepted accounting principles 3) unqualified opinion with a separate explanatory paragraph 4) adverse opinion 3 Question 12 (1 point) The assurance function involves the lending of credibility to financial information. 1) True 2) False Question 13 (1 point) A clean opinion does not imply that the financial statement disclosures are reasonably adequate. True False Question 14 (1 point) A scope limitation imposed by a client affecting the audit in a material, but not pervasive way, would result in a disclaimer of opinion. 1) True O 2) False Question 15 (1 point) The failure to perform a duty with the requisite standard of care is known as 1) lack of independence 02 negligence 3) lack of objects The opinion statement "In our opinion, the accompanying financial statements present fairly, in all material respects ..." is an example of which type of opinion? O A qualified opinion for a departure from GAAP O A qualified opinion for a scope limitation An unmodified opinion An adverse opinion Question 17 (1 point) Control risk is O 1) the probability that a material misstatement could occur and not be prevented or detected by the company's internal control policies and procedures 2) the probability that a material misstatement could occur and not be detected by the auditor's audit procedures 3) the risk that the auditor will not be able to complete the audit on a timely basis 4) the risk that the auditor will not properly control the staff on the audit engagement Question 18 (1 point) By its silence, a clean opinion implies that the financial statement disclosures are reasonably adequate. 1) True 2) False Question 19 (1 point) Independent auditors of financial statements perform audits that reduce and control o the complexity of financial statements the business risks faced by investors quality reviews performed by other public accounting firms. the information risk faced by investors har als as suffered and that the setor can be successful Question 19 (1 point) Independent auditors of financial statements perform audits that reduce and control the complexity of financial statements O the business risks faced by investors quality reviews performed by other public accounting firms. the information risk faced by investors Question 20 (1 point) Under tort law, the claimant must prove both that a loss was suffered and that the auditor caused that loss, before a claim against the auditor can be successful. True False