AUDITING MIDTERMS
judgement as to whether the financial statements are
UNMODIFIED OPINION – the opinion expressed by the
auditors when the auditor concludes that the financial
statements are prepared, in all matters respects, in accordance
with the applicable financial reporting framework is.
ADVERSE OPINION AND A QUALIFIED OPINION – an auditor is
confronted with an exception sufficiently material to warrant a
modification relates to a departure from PFRS, the auditor
must decide between expressing a(n).
HAS KNOWLEDGE THAT THE FINANCIAL STATEMENT ARE NOT
IN CONFORMITY WITH THE APPLICABLE FINANCIAL
REPORTING FRAMEWORK – the adverse opinion report will be
issued by the independent auditor when he/she.
? - auditing standard requires that the audit report must be
titled. This is done in order to.
DATE THE FINANCIAL STATEMENTS WERE APPROVED BY THE
CLIENT MANAGEMENT – an audit report should be dated as of
the.
MATERIAL BUT NOT PERVASIVE – the qualified opinion report
will be issued by the independent auditor when, in the
auditor’s judgement the effects or possible effects of the item
under construction are.
THE PRESIDENT OF CLIENT COMPANY – the auditor does not
normally address the report to.
? – PSA 700 provides guidance on the.
HAS BEEN UNABLE TO SATISFY HIMSELF/HERSELF THAT THE
OVERALL FINANCIAL STATEMENTS ARE PRESENTED FAIRLY – a
disclaimer is issued whenever the auditor.
STATEMENT OF CHANGES IN FINANCIAL POSITION – the
auditor’s opinion covers the complete set of financial
statements. A complete set of financial statements does not
include.
WHEN THE CONDITION IS MATERIAL AND PERVASIVE – both
disclaimer and adverse opinions are used.
QUALIFIED OPINION OR AN ADVERSE OPINION – if the
auditor’s believes that a required material disclosure is omitted
from the financial statements, the auditor should decided
between issuing a(n)
? – the most common type of audit report contains
? – the auditors judgement as to whether the financial
statements are presented fairly, in all material respect, is made
in the context of.
? PSA 700 requires the audit report to be signed. The auditor’s
signature should be.
PHILIPPINE STANDARDS OF AUDITING – the auditors
presented fairly, in all material respect, is made in the context
of.
? – which of the following is not one of the element of the
auditor’s report?
? – the element of the auditor’s report that identifies the
financial statement audited is the
? – auditing standard requires that the audit report must be
titled. This is done in order to
? – which of the following elements of the auditor’s report
affirm the auditor’s independence?
? – which section of the auditor’s report gives a general
description of an audit of financial statements?
QUIZ 2
? – ABC company prepared its financial statements on an
accounting basis prescribed by a government agency solely for
filing with that agency. The CPA believes that the financial
statements are not presented fairly in conformity with the
prescribed basis. The CPA’s report must contain.
BOTH YEARS – when the audited financial statements of the
prior year are presented together with those of the current
year, the continuing the auditor’s report should cover.
AN UNCERTAINTY ARISES ABOUT THE ENTITY’S CONTINUED
EXISTENCE – the auditor should consider adding an emphasis
of matter paragraph when.
AN UNCERTAINTY ARISES ABOUT THE ENTITY’S CONTINUED
EXISTENC – the auditor should consider adding an emphasis of
matter paragraph when.
QUALIFIED REPORT – an auditor who concludes, that an
uncertainty is not adequately disclosed in, the financial
statements should issue a(an)
RELIANCE PLACED ON THE REPORT OF COMPONENT AUDITOR
– which of the following will not result in a modification of the
auditor’s report?
DISCLOSED IN THE FINANCIAL STATEMENTS – the use of an
“Emphasis of Matter” paragraph shall be limited only to those
matters
THE SUFFICIENCY AND APPROPRIATENESS OF AUDIT
EVIDENCE – material misstatements in the financial statements
may arise from all of the following conditions, except.
MATERIAL INCONSISTENCY – this exist, when the other
information contradicts the information contained in the
audited financial statements.

? – the auditor’s report on summary financial statements

? – when management does not amend the financial

statements in circumstances where the auditor believes they
need to be amended and the auditor’s report has not been
released to the entity, the auditor should express.

? – the CPA is asked to audit financial statements prepared on

a modified cash basis. This is acceptable provided the CPA.

? – this exist, when other information, not related to matters

appearing in the financial statements, is incorrectly stated or
presented.

OF AN ORGANIZATION THAT HAS LIMITED THE SCOPE OF THE

AUDIT – auditors may issue a special purpose audit report for
all of the following except an audit of financial presentations.

AUDIT REPORT WITH EMPHASIS ON MATTER PARAGRAPH –

which of the following is not to be construed as a modification
of opinion?

SPECIAL PURPOSE FINANCIAL STATEMENTS – financial

statements prepared in accordance with a special purpose
framework are referred to in PSA 800 as

? – a framework of presentation where amounts and other

disclosure for the prior period are included as integral part of
the current period financial statements, and are intended to be
read only in relation to the amounts and other disclosure
relating to the current period.

? – an auditor may issue an unmodified report when the.

? – which of the following is not considered a special purpose

framework.