Audit Report- unqualified Opinion - CORRECT ANSWER-have no reservations
concerning the financial statements. This is also known as a clean opinion
... [Show More] meaning that
the financial statement appear to be presented fairly. Free of material misstataments
Audit Report-Qualified Opinion - CORRECT ANSWER-the auditor, having obtained
sufficient appropriate audit evi- dence, concludes that misstatements, individually or in
the aggre- gate, are material but not pervasive to the financial statements or
Audit Report-Disclaimer - CORRECT ANSWER-auditor is unable to express a definite
opinon..company lack of providing information not able to completely fulfill task The
auditor should express an adverse opinion when the auditor, hav- ing obtained sufficient
appropriate audit evidence, concludes that misstate- ments, individually or in the
aggregate, are both material and pervasive to the financial statements.
Audit Report-Adverse Opinion - CORRECT ANSWER-the financial statements do not
fairly present the financial position/ not in accordance with GAAP/fraud
Audit Report contains - CORRECT ANSWER-three paragraphs
1. the responsibilties of the auditor and the management of the entity
2. the scope of the audit
3. the auditor's opinion of the entity's financial statement
Directors/Management Responsibility - CORRECT ANSWER-Prepare the financial
reports that gives true and fair view in accordance to accounting standards including
internal control
AICPA Code of Professional Conduct - CORRECT ANSWER-1.Public Interest-act with
honesty and in fulfillment of their obligation to the public to provide sound, ethical
service
2.Standards of Integrity-trust
3. Data standards-accountants are obligated to obtain sufficient relevant data to support
a reasonable basis for conclusions or recommendation
4. Standards of Objectivity &independence- objectivity is a state of mind to be
impartial/intellectualluy honest and free of conflicts of interest. Requires accountants to
be independent
5 Standards of Due Care- Discharge their Professional responsibility to the best of their
interest
Auditor's Withdrawal form Engagement - CORRECT ANSWER-Depends on
A. the implications about the integrity of management [Show Less]