An auditor may not express a qualified opinion whenSelect one:a.An accounting principles at variance with generally accepted accounting principles is used.b.The auditor lacks independence with respect to the audited entity.c.The auditor's report refers to the work of a specialist.d.A scope limitation prevents the auditor from completing an important audit procedure.

An auditor decides to express a qualified opinion on an entity's financial statements because a major inadequacy in its computerized accounting records prevents the auditor from applying necessary procedures. The opinion paragraph of the auditor's report should state that the qualification pertains toSelect one:a.A client-imposed scope limitation.b.The possible effects on the financial statements.c.Inadequate disclosure of necessary information.d.A departure from generally accepted auditing standards.

An auditor would issue an adverse opinion ifSelect one:a.A qualified opinion cannot be given because the auditor lacks independence.b.The audit was begun by other independent auditors who withdrew from the engagement.c.The statements taken as a whole do not fairly present the financial condition and results of operations of the company.d.The restriction on the scope of the audit was significant.

The description of an audit in the scope paragraph of the standard audit report includes all of the following except:Select one:a.Assessing control risk.b.Examining, on a test basis, evidence supporting the amount and disclosures in the financial statements.c.Assessing the accounting principles used and significant estimates made by management.d.Evaluating the overall financial statement presentation.

An auditor who audits the financial report of a company, registered scheme or disclosing entity must report to members: a. An opinion of whether the financial report complies with accounting standards and gives a true and fair view. b. An opinion of whether the directors and other key management personal have properly managed the entity during the period. c. A statement of whether anything has come their attention that could make the financial report false and misleading. d. A confirmation that the financial report complies with accounting standards and gives a true and fair view.

Which of the following is correct statement?Select one:a.The auditor should use professional judgment to assess audit risk and to design audit procedures to ensure it is eliminated.b.The auditor is an insurer, and his or her report constitutes a guarantee.c.The subsequent discovery that a material misstatement exists in the financial statements is evidence of inadequate planning, performance, or judgment on the part of the auditor.d.The auditor should obtain an understanding of the accounting and internal control systems sufficient to plan the audit and develop an effective audit approach.