Question: a. A material departure from generally accepted
a. A material departure from generally accepted accounting principles will result in auditor consideration of: (1) Whether to issue an adverse opinion rather than a disclaimer of opinion. (2) Whether to issue a disclaimer of opinion rather than a qualified opinion. (3) Whether to issue an adverse opinion rather than a qualified opinion. (4) Nothing, because none of these opinions is applicable to this type of exception. b. The auditors’ report should be dated as of the date the: (1) Report is delivered to the client. (2) Auditors have accumulated sufficient appropriate evidence. (3) Fiscal period under audit ends. (4) Peer review of the working papers is completed. c. In an audit report on combined financial statements, reference to the fact that a portion of the audit was performed by a component auditor is: (1) Not to be construed as a qualification, but rather as a division of responsibility between the two CPA firms. (2) Not in accordance with generally accepted auditing standards. (3) A qualification that lessens the collective responsibility of both CPA firms. (4) An example of a dual opinion requiring the signatures of both auditors. d. Assume that the opinion paragraph of an auditors’ report begins as follows: “With the explanation given in Note 6, . . . the financial statements referred to above present fairly . . .†This is: (1) An unmodified opinion. (2) A disclaimer of opinion. (3) An “except for†opinion. (4) An improper type of reporting. e. The auditors who wish to draw reader attention to a financial statement note disclosure on significant transactions with related parties should disclose this fact in: (1) An emphasis-of-matter paragraph to the auditors’ report. (2) A footnote to the financial statements. (3) The body of the financial statements. (4) The “summary of significant accounting policies†section of the financial statements. f. What type or types of audit opinion are appropriate when financial statements are materially and pervasively misstated? 
g. Which of the following ordinarily involves the addition of an emphasis-of-matter paragraph to an audit report of a nonpublic company? (1) A consistency modification. (2) An adverse opinion. (3) A qualified opinion. (4) Part of the audit has been performed by component auditors. h. An audit report for a public client indicates that the audit was performed in accordance with: (1) Generally accepted auditing standards (United States). (2) Standards of the Public Company Accounting Oversight Board (United States). (3) Generally accepted accounting principles (United States). (4) Generally accepted accounting principles (Public Company Accounting Oversight Board). i. An audit report for a public client indicates that the financial statements were prepared in conformity with: (1) Generally accepted auditing standards (United States). (2) Standards of the Public Company Accounting Oversight Board (United States). (3) Generally accepted accounting principles (United States). (4) Generally accepted accounting principles (Public Company Accounting Oversight Board). j. When the matter is properly disclosed in the financial statements of a nonpublic company, the likely result of substantial doubt about the ability of the client to continue as a going concern is the issuance of which of the following audit opinions? 
k. A nonpublic company’s change in accounting principles that the auditors believe is not justified is likely to result in which of the following types of audit opinions? 
l. Which of the following is least likely to result in inclusion of an additional paragraph being added to an audit report? (1) The company is a component of a larger business enterprise. (2) An unusually important significant event. (3) A decision not to confirm accounts receivable. (4) A risk or uncertainty.
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Qualifled Adverse (1) (2) (3) (4) Yes Yes Yes No No Yes No No Unmodified with Qualifled Emphasis-of-Matter (1) (2) (3) (4) Yes Yes Yes No No Yes No No Unmodified with Qualified Emphasis-of-Matter (1) (2) (3) (4) Yes Yes Yes No No Yes No No
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