Under which of the following set of circumstances might theauditors disclaim an opinion? a There has been
Question:
Under which of the following set of circumstances might theauditors disclaim an opinion?
a | There has been a material change between periods in the methodof application of accounting principles. | |
b | The group auditors decide to make reference to the report ofcomponent auditor who audited a subsidiary. | |
c | The financial statements contain a departure from generallyaccepted accounting principles, the effect of which ismaterial. | |
d | The auditors cannot observe ending inventory nor confirmaccounts receivable and cannot obtain sufficient evidence usingalternative procedures. |
Once a CPA has determined that accounts receivable haveincreased due to slow collections in a "tight money" environment,the CPA would be likely to:
a | Review the going concern ramifications. | |
b | Review the credit and collection policy. | |
c | Increase the balance in the allowance for bad debtsaccounts. | |
d | Expand tests of collectibility. |
Auditing and Assurance Services A Systematic Approach
ISBN: 978-1259162343
9th edition
Authors: William Messier, Steven Glover, Douglas Prawitt