Question

13-Those auditing standards require that the auditor plans and performs an audit to obtain reasonable assurance whether the financial statements are free of: to SOX the in USA is responsible to prepare additional report about:

        a – material misstatement           b- errors             c- fraud              d-none of the above  

14-“In my opinion, these financial statements present fairly, in all material respects, the financial position of the company as at  .........., 19..... and the results of its  operations and the changes in its financial position for the year then ended in accordance with generally accepted accounting principles” this opinion is:

        a – qualified        b- unqualified       c- adverse             d-disclaimer  

15-“In my opinion, these financial statements don’t present fairly, in all material respects, the financial position of the company as at  .........., 19..... and the results of its  operations and the changes in its financial position for the year then ended in accordance with generally accepted accounting principles” this opinion is:

        a – qualified        b- unqualified       c- adverse             d-disclaimer  

16-There are two reasons for ………… audit opinion: departure from GAAP or IFRS and scope limitation

        a – qualified        b- unqualified       c- adverse             d-disclaimer  

17- The …….. limitation means extent of audit work has been limited) inability to obtain sufficient evidence

         a – GAAP        b- GAAS       c- scope             d- none of the above  

18- If the Management’s deliberate refusal to let auditors perform some procedures, then the auditor’s opinion is:

a – qualified        b- unqualified       c- adverse             d-disclaimer  

Answer 1

Solution 13:

Those auditing standards require that the auditor plans and performs an audit to obtain reasonable assurance whether the financial statements are free of "material misstatement"

Hence option a is correct.

solution 14:

“In my opinion, these financial statements present fairly, in all material respects, the financial position of the company as at  .........., 19..... and the results of its  operations and the changes in its financial position for the year then ended in accordance with generally accepted accounting principles” this opinion is "Unqualified"

Hence option b is correct.

Solution 15:

“In my opinion, these financial statements don’t present fairly, in all material respects, the financial position of the company as at  .........., 19..... and the results of its  operations and the changes in its financial position for the year then ended in accordance with generally accepted accounting principles” this opinion is "Adverse"

Hence option c is correct.

Solution 16:

There are two reasons for qualified audit opinion: departure from GAAP or IFRS and scope limitation.

Hence option a is correct.

Solution 17:

The scope limitation means extent of audit work has been limited) inability to obtain sufficient evidence

Hence option c is correct.

Solution 18:

If the Management’s deliberate refusal to let auditors perform some procedures, then the auditor’s opinion is "disclaimer"

Hence option d is correct.