Read Only - You can't save changes to t... v An accounting principles at variance with generally accepted accounting principles is used. D. The auattor lacks independence with recpect tothe auelted entry. 15. An auditor decides to express a quaified opinion on an entity’ financial statornants because a major inadequacy in ts computenzed accounting records prevents the auditor from applying necessary procedures. The opinion paregrach ofthe auditor's report should state thatthe qualification pertains to: A.Adlent imposed scope imitation. B. A departure trom generally accepted auditing standards. C. The possible effects on the financial statements. D. lradequate disclosure of necessary information. 16. Totoy, CPA, was engaged to audit the financial statements of Bibo co, a new cient, for the year ended December 31, 2004, Totay obtained sufficient audt evidence for al of Bibo's financial statement items except Bibo's epening inventory, Due to inadequate financial records, Totoy could not verify Bibo's January 1, 2004 inventory balances. “Totoy’s opinion on Biba’s 2004 financial statements most likely willbe Balanced Sheet Income Statement A. Discsimer Disdaimar 8. Unqualified Disdarmer ©. Diedaimer Advene D. Unaualites aavene 17. When managemant prepares financial statements on the bass of a going concarn and the auditor believes the company mayor continue as 2 going concem, the auditor should issue a(t}: A. qualified opinion B. unqualified opinion with an explanatory paragraph C. disclaimer of opinion adverse opinion 118, Adul dated report contains the dates of a subsequent event and the date the: ‘A Ausitor completed work nthe cients office . Fnanctal statements were prepared . Subsequent event was resolved . Aucit report was delivered 19. An auditor who concludes that an uncertainty is not adequately discosed in the financial statements should issue 2: ‘A.Dacclaimar of opinion. B. Unqualified report with an explanatory paragraph. special reper: . Qualified report 20, An auditor may wich te emphasize a matter included inthe financial statements by adding an explanatory paragraph 10 the audit report. inthis ese the following paragraphs of the aut report should be modified: A. Introductory paragragh BB. Scope paragraph. Opinion paragraph. None 21. Incase ofa client imposed scope imitation, the auditor must consider issuing a A. Qualified opinion or disdaimer cfopinion —_B. Unqualified report with an explanatory paragraph Disclaimer of opinion or adverse opinion . Disclaimer of opinion. 22. Which ofthe following modifications ofthe standard auditor's report does nat require an exelanatory paragraph? AReferencetocother auditers inconsistency Scope limitation. Adverse opinion 23, Pamela, CPA, was engaged to audit the financial statements of One Co. after its fiscal ear had ended. The timing of Pamela's appointment as auditer and the start of field work made confirmation of accounts receivable by direct communication with the debtors ineffective. However, Pamela applied other procedures and was satisfied as tthe reasonableness of the account balances. Pamela's auditor’s report most likely contained a(n}