What is the difference between an Unqualified Audit Opinion with an Emphasis of Matter(s) Paragraph and an Unqualified Audit Opinion with an Other Matter(s) Paragraph?

1. a. One discusses new information not mentioned in the notes to the financial statements and the other discusses any deficiencies in the company’s internal controls
2. b. One discusses information already mentioned in the notes to the financial statements and the other discusses new information the auditor feels us important to the user
3. c. One discusses the tone at the top of the organization and the other emphasizes the role of the auditor during the audit process
4. d. One discusses new information and the other discusses future subsequent events

During your investigation of subsequent events you discovered that a large accounts receivable customer went bankrupt shortly after your client's year-end. What criteria would you use to determine whether you should adjust the year-end balance sheet for the write-off or not?

1. a. Management’s attitude when you mention an adjustment may be required
2. b. Whether the poor financial condition of the company was know in the audit year or only known after the year-end
3. c. Whether the customer is a related company or not
4. d. Whether the customer was a long term one or new customer

What audit report "opinion" would the auditor provide in the following situation?

During your examination of ABC Company Ltd., you conclude there is a possibility that inventory is materially overstated due to error or fraud. The client refuses to allow you to expand the scope of your examination sufficiently to verify whether the balance is actually misstated. Your concern has lead you to think about resigning.

1. a. Disclaimer of opinion
2. b. Adverse
3. c. Unqualified
4. d. Qualified-GAAP departure

What audit report "opinion" would the auditor provide in the following situation?

You were engaged to examine Apollo Inc.’s financial statements after the close of the corporation’s fiscal year. Because you were not engaged until after the balance sheet date, you were not able to physically observe the inventory count, which is a very material amount on the balance sheet. On the completion of your audit, you are satisfied that Apollo’s financial statements are presented fairly, including inventory about which you were able to satisfy yourself by the use of alternative audit procedures.

1. a. Qualified- Scope Restriction
2. b. Unqualified
3. c. Adverse
4. d. Unqualified- Other Matters Paragraph

Answer rating: 100% (QA)

d One discusses new information and the other discusses future subsequent events d Whether the cu... View the full answer