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15. In which of the following circumstances would an auditor most likely add an Emphasis of Matterparagraph to the auditor's report while expressing an unmodified opinion?A. The auditor is asked to report on a single financial statement [e.g., a statement of financial position].B. There is significant doubt about the entity's ability to continue as a going concern.C. Management's estimates of the effects future events are unreasonable.D.Certain transactions cannot be tested because of management's records retention policy.
16. If an auditor is satisfied that sufficient evidence supports management’s assertions about anuncertainly and its presentation or disclosure, the auditor should
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17.During the year ended December 31, VICTORIA Co.reported its property, plant and equipment atthe lower of cost or market [LCM] because their fair value had declined.The loss has been included inthe income statement and the adjustment has been fully disclosed in the notes.If a CPA believes thatthe values reported in the financial statements are reasonable, what opinion should be expressed?
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Financial Accounting: The Impact on Decision Makers
Norton/Porter
18. Reference to “financial statements” in PSA 700 [Forming an Opinion and Reporting on FinancialStatements], means
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19. Which of the following statements best describes a compliance framework?a. Compliance framework requires compliance with the requirements of the framework andacknowledges explicitly or implicitly that, to achieve fair presentation of the financial statement, it maybe necessary for management to provide disclosures beyond those specifically required by theframework.B. A compliance framework requires compliance with the requirements of the framework andacknowledges explicitly that it may be necessary for management to depart from a requirement of theframework to achieve fair presentation of the financial statements.C. A compliance framework only requires compliance with the requirements of the framework.D. A compliance framework refers to a financial reporting framework designed to meet the financialinformation needs of specific users.
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Financial Accounting: The Impact on Decision Makers
Norton/Porter
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