The CEO of an audit client routinely has paid for his personal gasoline and laun

Question

The CEO of an audit client routinely has paid for his personal gasoline and laundry expenses with the corporate credit card. The amount of these expenditures clearly is immaterial to the corporation. The auditor has a professional obligation to

An auditor performed an audit of a publicly held client which was subject to the SEC. During the subsequent period the auditor discovered a material misstatement of the financial statements which was promptly corrected by the client. After the correction the financial statements were determined to be fairly presented in all material respects. What impact would the discovery of this material misstatement which has been corrected have on the auditor's opinion on the client's internal controls?

Management of an audit client has refused to allow the CPA access to all minutes of the meetings of the board of directors. No material misstatements were discovered during the remainder of the audit. If the auditor is not able to obtain access to these minutes the resulting audit report most likely would contain a(n)

Assuming the auditor has found no material misstatements and has no other reservations regarding an audit client except for a remote probability that resolution of an uncertainty may have a material effect on the financial statements, the auditor would issue

A client company has followed GAAP in their financial reporting but has a history of negative cash flow trends and continuing losses which could cause the client to become insolvent. Which type of opinion will the auditor most likely give?

An audit client received a qualified audit opinion on their 2016 calendar year financial statements. This year the auditor was asked to render an opinion on both the 2016 and 2017 financial statements presented together. The misstatements which caused the qualified opinion on the 2016 statements have subsequently been corrected. Assuming that no material misstatements were found on either set of audited financial statements at the end of the most recent audit the appropriate report would be which of the following?

Audit evidence acquired in the initial audit of a fixed asset is

After completing the audit report of Halen Corporation, but before delivering the report to the client, a tornado demolished the main production facility. The auditor must decide whether to dual date the report or

In order to reduce the auditor's liability exposure, audit engagement letters should include a

Explanation / Answer

1) ans : 4 communications information to corporate board of directors

2)ans : 3 discovered material misstatements most likely qualifed opinion on clients internal controls

3)ans: 3 disclaimer opinion

4)ans: 2 unqualified opinion with explanatory paragraph

5)ans: 4 adverse opinion

6)ans 1 unqualified opinion on 2016 and 2017

7) ans 3 documents current audit file only

8) ans 4

9) ans 2 clearly state scope of the work to be done

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