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Section 7 F8

Authored by K59 Binh

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Section 7 F8
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15 questions

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1.

MULTIPLE CHOICE QUESTION

3 mins • 1 pt

The auditor of S Co has concluded that the use of the going concern assumption is appropriate and that the material uncertainty has been adequately disclosed. What is the impact of this conclusion on the auditor's report?

A Adverse opinion
B Qualified opinion
C Unmodified opinion without an emphasis of matter paragraph
D Unmodified opinion with an emphasis of matter paragraph

2.

MULTIPLE CHOICE QUESTION

3 mins • 1 pt

The auditor of Y Co has concluded that Y Co is not a going concern. The financial statements have been prepared on a going concern basis and management has refused to change them. What form of audit opinion will be issued by the auditor?

A An unmodified opinion
B A qualified 'except for' opinion due to material misstatement
C A qualified 'except for' opinion due to insufficient appropriate audit evidence
D An adverse opinion

3.

MULTIPLE CHOICE QUESTION

3 mins • 1 pt

Misstatements can arise from error or fraud. Which of the following statements is correct regarding the auditor's accumulation of identified misstatements?

A The auditor must accumulate all misstatements identified during the audit.
B The auditor must only accumulate individually material misstatements identified during the audit.
C The auditor must accumulate misstatements identified during the audit, other than those that are clearly trivial

4.

MULTIPLE CHOICE QUESTION

3 mins • 1 pt

ISA 700 Forming an opinion and reporting on financial statements sets out the basic elements of an auditor's report. Which of the following is not included in an unmodified auditor's report?

A Management's responsibility for the financial statements
B Auditors' responsibilities
C Audit opinion
D Deficiencies of internal controls

5.

MULTIPLE CHOICE QUESTION

3 mins • 1 pt

The auditor of Q Co has completed the audit and has concluded that sufficient appropriate evidence has been obtained, which confirms that the financial statements are not materially misstated. Which form of audit opinion will the auditor issue?

A Adverse opinion
B Qualified opinion
C Unmodified opinion
D A disclaimer of opinion

6.

MULTIPLE CHOICE QUESTION

3 mins • 1 pt

ISA 705 Modification to the opinion in the independent auditor's report identifies three possible types of modification. In which of the following circumstances would a disclaimer of opinion be issued?

A The auditor concludes that the financial statements include misstatements which are material but not pervasive to the financial statements.
B The auditor concludes that the financial statements include misstatements which are both material and pervasive to the financial statements.
C The auditor has not been able to obtain sufficient appropriate audit evidence on which to base an opinion but has concluded that the possible effects of any undetected misstatements could be material but not pervasive .
D The auditor has not been able to obtain sufficient appropriate audit evidence on which to base an opinion and has concluded that the possible effects of any undetected misstatements could be both material and pervasive.

7.

MULTIPLE CHOICE QUESTION

3 mins • 1 pt

The auditor of B Co has concluded that inventory is overstated as a number of lines have not been valued at the lower of cost and net realisable value. The overstatement is material but not pervasive to the financial statements. Management has refused to make an adjustment to the financial statements. What form of modified opinion should the auditor issue?

A Adverse opinion
B Disclaimer of opinion
C Qualified opinion due to a material misstatement
D Qualified opinion due to insufficient appropriate evidence on which to base an opinion

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