Select the necessary words from the list of possibilities to complete the following statements. 1. Audit...

  

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Select the necessary words from the list of possibilities to complete the following statements. 1. Audit reports issued under GAAS ordinarily are signed with the name of the Statements 2. Responsibility for the preparation and fair presentation of the financial statements rests with the 3. The auditor's responsibility relating to a GAAS audit is for 4. A(n) opinion is an opinion that the financial statements of a public company fairly present financial position, results of operations, and cash flows, in conformity with generally accepted accounting principles. on the financial statements. When a nonpublic client elects to change accounting principles from one acceptable principle to another 5. acceptable principle and the auditors agree the change is desirable, they should issue a report with a(n) opinion. 7 6. When financial statements contain a material departure from generally accepted accounting principles, the auditors qualify their opinion, or they issue a(n) opinion depending on the materiality of the departure. The auditors issue a qualified opinion or a(n) financial statements to be inadequate. opinion, if they consider the disclosure in the client's 8. If a scope limitation is so severe that a qualified opinion is inappropriate, the auditors should issue a(n) 9. All nonpublic company audit reports that are qualified should contain a(n) qualification. explaining the details of the 10 If the auditors have examined the prior year's financial statements presented for comparative purposes, they should their opinion for any new information. Answer adverse basis for modification paragraph (or basis for qualified opinion paragraph) CPA firm disclaimer of opinion expressing an opinion management unmodified unqualified update Select the necessary words from the list of possibilities to complete the following statements. 1. Audit reports issued under GAAS ordinarily are signed with the name of the Statements 2. Responsibility for the preparation and fair presentation of the financial statements rests with the 3. The auditor's responsibility relating to a GAAS audit is for 4. A(n) opinion is an opinion that the financial statements of a public company fairly present financial position, results of operations, and cash flows, in conformity with generally accepted accounting principles. on the financial statements. When a nonpublic client elects to change accounting principles from one acceptable principle to another 5. acceptable principle and the auditors agree the change is desirable, they should issue a report with a(n) opinion. 7 6. When financial statements contain a material departure from generally accepted accounting principles, the auditors qualify their opinion, or they issue a(n) opinion depending on the materiality of the departure. The auditors issue a qualified opinion or a(n) financial statements to be inadequate. opinion, if they consider the disclosure in the client's 8. If a scope limitation is so severe that a qualified opinion is inappropriate, the auditors should issue a(n) 9. All nonpublic company audit reports that are qualified should contain a(n) qualification. explaining the details of the 10 If the auditors have examined the prior year's financial statements presented for comparative purposes, they should their opinion for any new information. Answer adverse basis for modification paragraph (or basis for qualified opinion paragraph) CPA firm disclaimer of opinion expressing an opinion management unmodified unqualified update

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