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Which of the following best describes why an independent auditor is asked to express an opinion on the fair presentation of financial statements?

The opinion of an independent party is needed because a company may not be objective with respect to its own financial statements

Independent auditing can best be described as

A discipline that attests to the results of accounting and other functional operations and data

Which of the following professional services is an attestation engagement

An engagement to report on compliance with statutory requirements

Which of the following attributes is likely to be unique to the audit work of CPAs as compared to the work performed by practitioners of other professions?


International Standards on Auditing are established by the:

International Auditing and Assurance Standards Board

Which of the following best describes what is meant by U.S. generally accepted auditing standards?

Measures of the quality of the auditor's performance

The general group of U.S. generally accepted auditing standards includes a requirement that:

Due professional care be exercised by the auditor

What is the general character of the three generally accepted auditing standards classified as standards of field work?

The criteria of audit planning and evidence gathering

A CPA firm is reasonably assured of meeting its responsibility to provide services that conform with professional standards by:

Having an appropriate system of quality control

The nature and extent of a CPA firm's quality control policies and procedures depend on:

The firm's size, the nature of the firm's practice and cost benefit consideration

Which of the following are elements of a CPA firm's quality control that should be considered in establishing its quality control policies and procedures?

Human resources, monitoring, and engagement performance

One purpose of establishing quality control policies and procedures for deciding whether to accept a new client is to:

Provide reasonable assurance that the integrity of the client is considered

Which of the following statements about a combined report on the financial statements and internal control over financial reporting is correct?

The report includes additional paragraphs for the definition and limitations on internal control

The date of the CPA's opinion on the financial statements of the client should be the date of

Completion of all important audit procedures

If a principal auditor decides to refer in his or her report to the audit of another auditor, he or she is required to disclose the

Portion of the financial statements audited by the other auditor

An entity changed from the straight-line method to the declining-balance method of depreciation for all newly acquired assets. This change has no material effect on the current year's financial statements but is reasonably certain to have a substantial effect in later years. If the change is disclosed in the notes to the financial statements, the auditor should issue a report with an

Unqualified opinion

When the financial statements are fairly stated but the auditor concludes there is substantial doubt whether the client can continue in existence, the audtor should issue an

Unqualified opinion with an explanatory paragraph

The introductory paragraph of an auditor's report contains the following "We did

Indicate a division of the responsibility

The annual audit of Midwestern manufacturing revealed that sales were accidently being recorded as revenue when the goods were ordered, instead of when they were shipped. Assuming the amount in question is material and the client is unwilling to correct the error, the CPA should

A qualified "except for" opinion or adverse opinion

Under which of the following circumstances would a disclaimer of opinion not be appropriate?

Management does not provide reasonable justification for a change in accounting principles

The opinion paragraphs of a CPA's report states: "In our opinion, except for the effects of not capitalizing certain lease obligations, as discussed in the preceding paragraph the financial statements present fairly," in all material respects...This paragraph expresses a

Qualified opinion

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