Auditing: A Practical Approach 4th Canadian Edition by Robyn Moroney Test bank
b) adverse audit opinion.
c) unqualified audit opinion with an emphasis of matter.
d) denial of audit opinion.
Answer: c
Bloomcode: Knowledge
Difficulty: Easy
Learning Objective: Outline different audit opinions.
Section Reference: 1.5 Different audit opinions
CPA Competency: Audit and Assurance
AACSB: Analytic
45. Which of the following is not a type of opinion?
a) qualified opinion
b) adjusted opinion
c) adverse opinion
d) disclaimer of opinion
Answer: b
Bloomcode: Knowledge
Difficulty: Easy
Learning Objective: Outline different audit opinions.
Section Reference: 1.5 Different audit opinions
CPA Competency: Audit and Assurance
AACSB: Analytic
46. The following can be said about an emphasis of matter:
a) it is included when the auditor’s opinion has changed and the auditor wants to bring the users’ attention to a particular matter.
b) it is only used in unqualified audit opinions.
c) it is included when the auditor’s opinion has not changed and the auditor wants to bring the users’ attention to a particular matter.
d) it cannot be used when expressing an audit opinion that has pervasive misstatements.
Answer: c
Bloomcode: Comprehension
Difficulty: Easy
Learning Objective: Outline different audit opinions.
Section Reference: 1.5 Different audit opinions
CPA Competency: Audit and Assurance
AACSB: Analytic
47. A financial statement auditor is required to audit all of the following except
a) income statement and balance sheet.
b) statement of cash flows.
c) management discussion and analysis.
d) notes to the financial statements.
Answer: c
Bloomcode: Knowledge
Difficulty: Easy
Learning Objective: Differentiate between the roles of the preparer and the auditor, and discuss the different firms that provide assurance services.
Section Reference: 1.6 Preparers and auditors
CPA Competency: Audit and Assurance
AACSB: Analytic
48. For a financial report to be relevant, it must
a) be free from material misstatement.
b) have an impact on the decisions made by users regarding the performance of the entity.
c) be periodically audited by an independent auditor.
d) include an audit report
Answer: b
Bloomcode: Comprehension
Difficulty: Easy
Learning Objective: Differentiate between the roles of the preparer and the auditor, and discuss the different firms that provide assurance services.
Section Reference: 1.6 Preparers and auditors
CPA Competency: Audit and Assurance
AACSB: Analytic
49. For a financial report to be reliable, it must
a) be free from material misstatement.
b) have an impact on the decisions made by users regarding the performance of the entity.
c) be periodically audited by an independent auditor.
d) be reviewed by an internal auditor
Answer: a
Bloomcode: Comprehension
Difficulty: Easy
Learning Objective: Differentiate between the roles of the preparer and the auditor, and discuss the different firms that provide assurance services.
Section Reference: 1.6 Preparers and auditors
CPA Competency: Audit and Assurance
AACSB: Analytic
50. When conducting an audit, an auditor should use
a) professional scepticism.
b) professional judgement.
c) due care.
d) all of these answers are correct
Answer: d
Bloomcode: Comprehension
Difficulty: Easy
Learning Objective: Differentiate between the roles of the preparer and the auditor, and discuss the different firms that provide assurance services.
Section Reference: 1.6 Preparers and auditors
CPA Competency: Audit and Assurance
AACSB: Analytic
51. The top tier of accounting firms is comprised of
a) Deloitte, Ernst & Young, PricewaterhouseCoopers (PwC), and KPMG.
b) Ernst & Young, PricewaterhouseCoopers (PwC), KPMG, and BDO.
c) Deloitte, Ernst & Young, KPMG, and Grant Thornton.
d) WHK Group, Deloitte, KPMG, and PricewaterhouseCoopers (PwC).
Answer: a
Bloomcode: Knowledge
Difficulty: Easy
Learning Objective: Differentiate between the roles of the preparer and the auditor, and discuss the different firms that provide assurance services.
Section Reference: 1.6 Preparers and auditors
CPA Competency: Audit and Assurance
AACSB: Analytic