Questions from Auditing and Assurance

Q: When should the auditor include an explanatory paragraph in an unmodified opinion

When should the auditor include an explanatory paragraph in an unmodified opinion audit report?

Q: What are the three conditions that require a departure from an unmodified

What are the three conditions that require a departure from an unmodified opinion audit report? Give an example of each.

Q: Identify the six organizational structures available to CPA firms. Why are

Identify the six organizational structures available to CPA firms. Why are most CPA firms not organized as general partnerships?

Q: The following questions deal with auditing standards. Choose the best response

The following questions deal with auditing standards. Choose the best response. a. Which of the following best describes what is meant by U.S. auditing standards? (1) Acts to be performed by the audit...

Q: The following questions concern CPA firms’ liability under common law. Choose

The following questions concern CPA firms’ liability under common law. Choose the best response. a. In a common law action against an accountant, lack of privity is a viable defense if the plaintiff (...

Q: The following questions deal with liability under the 1933 and 1934 securities

The following questions deal with liability under the 1933 and 1934 securities acts. Choose the best response. a. Major, Major & Sharpe, CPAs, are the auditors of MacLain Technologies. In connection w...

Q: The following questions deal with deficiencies in internal control. Choose the

The following questions deal with deficiencies in internal control. Choose the best response. a. An internal control deficiency may be defined as a condition in which material misstatements would ordi...

Q: The following questions deal with assessing control risk in a financial statement

The following questions deal with assessing control risk in a financial statement audit. Choose the best response. a. On the basis of audit evidence gathered and evaluated, an auditor decides to incre...

Q: The following questions concern auditing IT systems. Choose the best response

The following questions concern auditing IT systems. Choose the best response. a. As general IT controls weaken, the auditor is most likely to (1) reduce testing of automated application controls done...

Q: The following questions concern the auditor’s responses to the possibility of fraud

The following questions concern the auditor’s responses to the possibility of fraud. When fraud risk factors are identified during an audit, the auditor’s documenta...