{"id":123689,"date":"2026-04-16T03:37:58","date_gmt":"2026-04-16T03:37:58","guid":{"rendered":"https:\/\/www.dumpsbase.com\/freedumps\/?p=123689"},"modified":"2026-04-16T03:38:02","modified_gmt":"2026-04-16T03:38:02","slug":"latest-cpa-auditing-dumps-v8-02-for-preparing-more-effectively-and-passing-the-cpa-auditing-and-attestation-aud-section-check-cpa-auditing-free-dumps-part-1-q1-q40-first","status":"publish","type":"post","link":"https:\/\/www.dumpsbase.com\/freedumps\/latest-cpa-auditing-dumps-v8-02-for-preparing-more-effectively-and-passing-the-cpa-auditing-and-attestation-aud-section-check-cpa-auditing-free-dumps-part-1-q1-q40-first.html","title":{"rendered":"Latest CPA-Auditing Dumps (V8.02) for Preparing More Effectively and Passing the CPA Auditing and Attestation (AUD) Section &#8211; Check CPA-Auditing Free Dumps (Part 1, Q1-Q40) First"},"content":{"rendered":"\n<p>When coming for your <strong><em><a href=\"https:\/\/www.reddit.com\/r\/freedumps\/comments\/1sm1c5s\/why_are_people_still_talking_about_cpa_business\/\">Certified Public Accountant (CPA)<\/a><\/em><\/strong> exam, you must complete three core sections and one discipline section in total. And the CPA Auditing and Attestation (AUD) is one of the core sections, focusing on audit procedures, internal controls, and audit reporting. And now, you can prepare more effectively with the latest CPA-Auditing exam questions for this AUD section. DumpsBase has the latest CPA-Auditing dumps (V8.02), designed to align closely with current exam objectives and real testing scenarios. These up-to-date exam questions cover all critical domains, helping you build a solid and well-rounded understanding of the subject. Choose DumpsBase CPA-Auditing exam dumps today. By incorporating these comprehensive exam questions into your study plan, you can boost your confidence, enhance your exam readiness, and significantly increase your chances of passing the CPA Auditing and Attestation (AUD) exam on your first attempt.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Check CPA-Auditing free dumps (Part 1, Q1-Q40) of V8.02 first to access quality first:<\/h2>\n\n\n<script>\n\t  window.fbAsyncInit = function() {\n\t    FB.init({\n\t      appId            : '622169541470367',\n\t      autoLogAppEvents : true,\n\t      xfbml            : true,\n\t      version          : 'v3.1'\n\t    });\n\t  };\n\t\n\t  (function(d, s, id){\n\t     var js, fjs = d.getElementsByTagName(s)[0];\n\t     if (d.getElementById(id)) {return;}\n\t     js = d.createElement(s); js.id = id;\n\t     js.src = \"https:\/\/connect.facebook.net\/en_US\/sdk.js\";\n\t     fjs.parentNode.insertBefore(js, fjs);\n\t   }(document, 'script', 'facebook-jssdk'));\n\t<\/script><script type=\"text\/javascript\" >\ndocument.addEventListener(\"DOMContentLoaded\", function(event) { \nif(!window.jQuery) alert(\"The important jQuery library is not properly loaded in your site. Your WordPress theme is probably missing the essential wp_head() call. You can switch to another theme and you will see that the plugin works fine and this notice disappears. If you are still not sure what to do you can contact us for help.\");\n});\n<\/script>  \n  \n<div  id=\"watupro_quiz\" class=\"quiz-area single-page-quiz\">\n<p id=\"submittingExam12006\" style=\"display:none;text-align:center;\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.dumpsbase.com\/freedumps\/wp-content\/plugins\/watupro\/img\/loading.gif\" width=\"16\" height=\"16\"><\/p>\n\n<div class=\"watupro-exam-description\" id=\"description-quiz-12006\"><\/div>\n\n<form action=\"\" method=\"post\" class=\"quiz-form\" id=\"quiz-12006\"  enctype=\"multipart\/form-data\" >\n<div class='watu-question ' id='question-1' style=';'><div id='questionWrap-1'  class='   watupro-question-id-469906'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>1. <\/span>Because of the risk of material misstatement, an audit of financial statements in accordance with generally accepted auditing standards should be planned and performed with an attitude of:<\/div><input type='hidden' name='question_id[]' id='qID_1' value='469906' \/><input type='hidden' id='answerType469906' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469906[]' id='answer-id-1816513' class='answer   answerof-469906 ' value='1816513'   \/><label for='answer-id-1816513' id='answer-label-1816513' class=' answer'><span>Objective judgment.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469906[]' id='answer-id-1816514' class='answer   answerof-469906 ' value='1816514'   \/><label for='answer-id-1816514' id='answer-label-1816514' class=' answer'><span>Independent integrity.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469906[]' id='answer-id-1816515' class='answer   answerof-469906 ' value='1816515'   \/><label for='answer-id-1816515' id='answer-label-1816515' class=' answer'><span>Professional skepticism.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469906[]' id='answer-id-1816516' class='answer   answerof-469906 ' value='1816516'   \/><label for='answer-id-1816516' id='answer-label-1816516' class=' answer'><span>Impartial conservatism.<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-2' style=';'><div id='questionWrap-2'  class='   watupro-question-id-469907'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>2. <\/span>An auditor of a nonpublic company must conduct the audit in accordance with: <br \/>\r<br>I. ASB standards. <br \/>\r<br>II. PCAOB standards.<\/div><input type='hidden' name='question_id[]' id='qID_2' value='469907' \/><input type='hidden' id='answerType469907' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469907[]' id='answer-id-1816517' class='answer   answerof-469907 ' value='1816517'   \/><label for='answer-id-1816517' id='answer-label-1816517' class=' answer'><span>Both I and I<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469907[]' id='answer-id-1816518' class='answer   answerof-469907 ' value='1816518'   \/><label for='answer-id-1816518' id='answer-label-1816518' class=' answer'><span>Either I or II, but not both.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469907[]' id='answer-id-1816519' class='answer   answerof-469907 ' value='1816519'   \/><label for='answer-id-1816519' id='answer-label-1816519' class=' answer'><span>I<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-3' style=';'><div id='questionWrap-3'  class='   watupro-question-id-469908'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>3. <\/span>Under which of the following circumstances would a disclaimer of opinion not be appropriate?<\/div><input type='hidden' name='question_id[]' id='qID_3' value='469908' \/><input type='hidden' id='answerType469908' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469908[]' id='answer-id-1816520' class='answer   answerof-469908 ' value='1816520'   \/><label for='answer-id-1816520' id='answer-label-1816520' class=' answer'><span>The financial statements fail to contain adequate disclosure of related party transactions.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469908[]' id='answer-id-1816521' class='answer   answerof-469908 ' value='1816521'   \/><label for='answer-id-1816521' id='answer-label-1816521' class=' answer'><span>The client refuses to permit its attorney to furnish information requested in a letter of audit inquiry.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469908[]' id='answer-id-1816522' class='answer   answerof-469908 ' value='1816522'   \/><label for='answer-id-1816522' id='answer-label-1816522' class=' answer'><span>The auditor is engaged after fiscal year-end and is unable to observe physical inventories or apply alternative procedures to verify their balances.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469908[]' id='answer-id-1816523' class='answer   answerof-469908 ' value='1816523'   \/><label for='answer-id-1816523' id='answer-label-1816523' class=' answer'><span>The auditor is unable to determine the amounts associated with illegal acts committed by the client's management.<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-4' style=';'><div id='questionWrap-4'  class='   watupro-question-id-469909'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>4. <\/span>When an independent CPA is associated with the financial statements of a publicly held entity but has not audited or reviewed such statements, the appropriate form of report to be issued must include a(an):<\/div><input type='hidden' name='question_id[]' id='qID_4' value='469909' \/><input type='hidden' id='answerType469909' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469909[]' id='answer-id-1816524' class='answer   answerof-469909 ' value='1816524'   \/><label for='answer-id-1816524' id='answer-label-1816524' class=' answer'><span>Regulation S-X exemption.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469909[]' id='answer-id-1816525' class='answer   answerof-469909 ' value='1816525'   \/><label for='answer-id-1816525' id='answer-label-1816525' class=' answer'><span>Report on pro forma financial statements.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469909[]' id='answer-id-1816526' class='answer   answerof-469909 ' value='1816526'   \/><label for='answer-id-1816526' id='answer-label-1816526' class=' answer'><span>Unaudited association report.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469909[]' id='answer-id-1816527' class='answer   answerof-469909 ' value='1816527'   \/><label for='answer-id-1816527' id='answer-label-1816527' class=' answer'><span>Disclaimer of opinion.<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-5' style=';'><div id='questionWrap-5'  class='   watupro-question-id-469910'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>5. <\/span>Which of the following reporting options is least likely with regard to supplementary information that is required by GAAP?<\/div><input type='hidden' name='question_id[]' id='qID_5' value='469910' \/><input type='hidden' id='answerType469910' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469910[]' id='answer-id-1816528' class='answer   answerof-469910 ' value='1816528'   \/><label for='answer-id-1816528' id='answer-label-1816528' class=' answer'><span>The auditor's report on the financial statements makes no reference to the supplementary information.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469910[]' id='answer-id-1816529' class='answer   answerof-469910 ' value='1816529'   \/><label for='answer-id-1816529' id='answer-label-1816529' class=' answer'><span>A disclaimer of opinion is issued on supplementary information that is not clearly distinguished from the financial statements and is not marked &quot;unaudited.&quot;<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469910[]' id='answer-id-1816530' class='answer   answerof-469910 ' value='1816530'   \/><label for='answer-id-1816530' id='answer-label-1816530' class=' answer'><span>The auditor's report on the financial statements includes both an opinion on the supplementary information and a statement restricting the use of the report.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469910[]' id='answer-id-1816531' class='answer   answerof-469910 ' value='1816531'   \/><label for='answer-id-1816531' id='answer-label-1816531' class=' answer'><span>The auditor's report on the financial statements includes an opinion regarding whether the supplementary information is fairly stated in all material respects in relation to the financial statements taken as a whole.<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-6' style=';'><div id='questionWrap-6'  class='   watupro-question-id-469911'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>6. <\/span>When audited financial statements are presented in a client's document containing other information, the auditor should:<\/div><input type='hidden' name='question_id[]' id='qID_6' value='469911' \/><input type='hidden' id='answerType469911' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469911[]' id='answer-id-1816532' class='answer   answerof-469911 ' value='1816532'   \/><label for='answer-id-1816532' id='answer-label-1816532' class=' answer'><span>Perform inquiry and analytical procedures to ascertain whether the other information is reasonable.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469911[]' id='answer-id-1816533' class='answer   answerof-469911 ' value='1816533'   \/><label for='answer-id-1816533' id='answer-label-1816533' class=' answer'><span>Add an explanatory paragraph to the auditor\u2019s report without changing the opinion on the financial statements.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469911[]' id='answer-id-1816534' class='answer   answerof-469911 ' value='1816534'   \/><label for='answer-id-1816534' id='answer-label-1816534' class=' answer'><span>Perform the appropriate substantive auditing procedures to corroborate the other information.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469911[]' id='answer-id-1816535' class='answer   answerof-469911 ' value='1816535'   \/><label for='answer-id-1816535' id='answer-label-1816535' class=' answer'><span>Read the other information to determine that it is consistent with the audited financial statements.<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-7' style=';'><div id='questionWrap-7'  class='   watupro-question-id-469912'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>7. <\/span>For an entity's financial statements to be presented fairly in conformity with generally accepted accounting principles, the principles selected should:<\/div><input type='hidden' name='question_id[]' id='qID_7' value='469912' \/><input type='hidden' id='answerType469912' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469912[]' id='answer-id-1816536' class='answer   answerof-469912 ' value='1816536'   \/><label for='answer-id-1816536' id='answer-label-1816536' class=' answer'><span>Be applied on a basis consistent with those followed in the prior year.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469912[]' id='answer-id-1816537' class='answer   answerof-469912 ' value='1816537'   \/><label for='answer-id-1816537' id='answer-label-1816537' class=' answer'><span>Be approved by the Auditing Standards Board or the appropriate industry subcommittee.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469912[]' id='answer-id-1816538' class='answer   answerof-469912 ' value='1816538'   \/><label for='answer-id-1816538' id='answer-label-1816538' class=' answer'><span>Reflect transactions in a manner that presents the financial statements within a range of acceptable limits.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469912[]' id='answer-id-1816539' class='answer   answerof-469912 ' value='1816539'   \/><label for='answer-id-1816539' id='answer-label-1816539' class=' answer'><span>Match the principles used by most other entities within the entity's particular industry.<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-8' style=';'><div id='questionWrap-8'  class='   watupro-question-id-469913'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>8. <\/span>March, CPA, is engaged by Monday Corp., a client, to audit the financial statements of Wall Corp., a company that is not March's client. Monday expects to present Wall's audited financial statements with March's auditor's report to 1st Federal Bank to obtain financing in Monday's attempt to purchase Wall. <br \/>\r<br>In these circumstances, March's auditor's report would usually be addressed to:<\/div><input type='hidden' name='question_id[]' id='qID_8' value='469913' \/><input type='hidden' id='answerType469913' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469913[]' id='answer-id-1816540' class='answer   answerof-469913 ' value='1816540'   \/><label for='answer-id-1816540' id='answer-label-1816540' class=' answer'><span>Monday Corp., the client that engaged March.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469913[]' id='answer-id-1816541' class='answer   answerof-469913 ' value='1816541'   \/><label for='answer-id-1816541' id='answer-label-1816541' class=' answer'><span>Wall Corp., the entity audited by March.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469913[]' id='answer-id-1816542' class='answer   answerof-469913 ' value='1816542'   \/><label for='answer-id-1816542' id='answer-label-1816542' class=' answer'><span>1st Federal Bank.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469913[]' id='answer-id-1816543' class='answer   answerof-469913 ' value='1816543'   \/><label for='answer-id-1816543' id='answer-label-1816543' class=' answer'><span>Both Monday Corp. and 1st Federal Bank.<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-9' style=';'><div id='questionWrap-9'  class='   watupro-question-id-469914'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>9. <\/span>After issuing a report, an auditor has no obligation to make continuing inquiries or perform other procedures concerning the audited financial statements, unless:<\/div><input type='hidden' name='question_id[]' id='qID_9' value='469914' \/><input type='hidden' id='answerType469914' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469914[]' id='answer-id-1816544' class='answer   answerof-469914 ' value='1816544'   \/><label for='answer-id-1816544' id='answer-label-1816544' class=' answer'><span>Information, which existed at the report date and may affect the report, comes to the auditor's attention.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469914[]' id='answer-id-1816545' class='answer   answerof-469914 ' value='1816545'   \/><label for='answer-id-1816545' id='answer-label-1816545' class=' answer'><span>Management of the entity requests the auditor to reissue the auditor's report.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469914[]' id='answer-id-1816546' class='answer   answerof-469914 ' value='1816546'   \/><label for='answer-id-1816546' id='answer-label-1816546' class=' answer'><span>Information about an event that occurred after the date of the auditor's report comes to the auditor's attention.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469914[]' id='answer-id-1816547' class='answer   answerof-469914 ' value='1816547'   \/><label for='answer-id-1816547' id='answer-label-1816547' class=' answer'><span>Final determinations or resolutions are made of contingencies that had been disclosed in the financial statements.<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-10' style=';'><div id='questionWrap-10'  class='   watupro-question-id-469915'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>10. <\/span>Which of the following is true regarding the standard audit report for an issuer?<\/div><input type='hidden' name='question_id[]' id='qID_10' value='469915' \/><input type='hidden' id='answerType469915' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469915[]' id='answer-id-1816548' class='answer   answerof-469915 ' value='1816548'   \/><label for='answer-id-1816548' id='answer-label-1816548' class=' answer'><span>Reference should be made in the scope paragraph to both PCAOB standards and generally accepted auditing standards.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469915[]' id='answer-id-1816549' class='answer   answerof-469915 ' value='1816549'   \/><label for='answer-id-1816549' id='answer-label-1816549' class=' answer'><span>PCAOB standards should not be mentioned at all, although their use is implied in the standard auditor's report.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469915[]' id='answer-id-1816550' class='answer   answerof-469915 ' value='1816550'   \/><label for='answer-id-1816550' id='answer-label-1816550' class=' answer'><span>Reference should be made in the scope paragraph to PCAOB standards, and in the opinion paragraph to generally accepted accounting principles.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469915[]' id='answer-id-1816551' class='answer   answerof-469915 ' value='1816551'   \/><label for='answer-id-1816551' id='answer-label-1816551' class=' answer'><span>Reference may be made in the scope paragraph to either PCAOB standards or generally accepted auditing standards.<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-11' style=';'><div id='questionWrap-11'  class='   watupro-question-id-469916'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>11. <\/span>The following explanatory paragraph was included in an auditor's report to indicate a lack of consistency: <br \/>\r<br>&quot;As discussed in note T to the financial statements, the company changed its method of computing depreciation in X0.&quot; <br \/>\r<br>How should the auditor report on this matter if the auditor concurred with the change? <br \/>\r<br>Type of Location of opinion explanatory paragraph<\/div><input type='hidden' name='question_id[]' id='qID_11' value='469916' \/><input type='hidden' id='answerType469916' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469916[]' id='answer-id-1816552' class='answer   answerof-469916 ' value='1816552'   \/><label for='answer-id-1816552' id='answer-label-1816552' class=' answer'><span>Unqualified Before opinion paragraph<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469916[]' id='answer-id-1816553' class='answer   answerof-469916 ' value='1816553'   \/><label for='answer-id-1816553' id='answer-label-1816553' class=' answer'><span>Unqualified After opinion paragraph<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469916[]' id='answer-id-1816554' class='answer   answerof-469916 ' value='1816554'   \/><label for='answer-id-1816554' id='answer-label-1816554' class=' answer'><span>Qualified Before opinion paragraph<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469916[]' id='answer-id-1816555' class='answer   answerof-469916 ' value='1816555'   \/><label for='answer-id-1816555' id='answer-label-1816555' class=' answer'><span>Qualified After opinion paragraph<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-12' style=';'><div id='questionWrap-12'  class='   watupro-question-id-469917'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>12. <\/span>An auditor concludes that there is substantial doubt about an entity's ability to continue as a going concern for a reasonable period of time. <br \/>\r<br>If the entity's disclosures concerning this matter are adequate, the audit report may include a(an): <br \/>\r<br><br><img decoding=\"async\" width=252 height=103 id=\"\u56fe\u7247 76\" src=\"https:\/\/www.dumpsbase.com\/freedumps\/wp-content\/uploads\/2026\/04\/image012-5.jpg\"><br><\/div><input type='hidden' name='question_id[]' id='qID_12' value='469917' \/><input type='hidden' id='answerType469917' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469917[]' id='answer-id-1816556' class='answer   answerof-469917 ' value='1816556'   \/><label for='answer-id-1816556' id='answer-label-1816556' class=' answer'><span>Option A<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469917[]' id='answer-id-1816557' class='answer   answerof-469917 ' value='1816557'   \/><label for='answer-id-1816557' id='answer-label-1816557' class=' answer'><span>Option B<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469917[]' id='answer-id-1816558' class='answer   answerof-469917 ' value='1816558'   \/><label for='answer-id-1816558' id='answer-label-1816558' class=' answer'><span>Option C<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469917[]' id='answer-id-1816559' class='answer   answerof-469917 ' value='1816559'   \/><label for='answer-id-1816559' id='answer-label-1816559' class=' answer'><span>Option D<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-13' style=';'><div id='questionWrap-13'  class='   watupro-question-id-469918'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>13. <\/span>Pell, CPA, decides to serve as principal auditor in the audit of the financial statements of Tech Consolidated, Inc. Smith, CPA, audits one of Tech's subsidiaries. <br \/>\r<br>In which situation(s) should Pell make reference to Smith's audit? <br \/>\r<br>I. Pell reviews Smith's audit documentation and assumes responsibility for Smith's work, but expresses a qualified opinion on Tech's financial statements. <br \/>\r<br>II. Pell is unable to review Smith's audit documentation; however, Pell's inquiries indicate that Smith has an excellent reputation for professional competence and integrity.<\/div><input type='hidden' name='question_id[]' id='qID_13' value='469918' \/><input type='hidden' id='answerType469918' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469918[]' id='answer-id-1816560' class='answer   answerof-469918 ' value='1816560'   \/><label for='answer-id-1816560' id='answer-label-1816560' class=' answer'><span>I only.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469918[]' id='answer-id-1816561' class='answer   answerof-469918 ' value='1816561'   \/><label for='answer-id-1816561' id='answer-label-1816561' class=' answer'><span>II only.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469918[]' id='answer-id-1816562' class='answer   answerof-469918 ' value='1816562'   \/><label for='answer-id-1816562' id='answer-label-1816562' class=' answer'><span>Both I and I<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469918[]' id='answer-id-1816563' class='answer   answerof-469918 ' value='1816563'   \/><label for='answer-id-1816563' id='answer-label-1816563' class=' answer'><span>Neither I nor I<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-14' style=';'><div id='questionWrap-14'  class='   watupro-question-id-469919'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>14. <\/span>When there has been a change in accounting principle that materially affects the comparability of the comparative financial statements presented and the auditor concurs with the change, the auditor should: <br \/>\r<br><br><img decoding=\"async\" width=363 height=143 id=\"\u56fe\u7247 77\" src=\"https:\/\/www.dumpsbase.com\/freedumps\/wp-content\/uploads\/2026\/04\/image011-4.jpg\"><br><\/div><input type='hidden' name='question_id[]' id='qID_14' value='469919' \/><input type='hidden' id='answerType469919' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469919[]' id='answer-id-1816564' class='answer   answerof-469919 ' value='1816564'   \/><label for='answer-id-1816564' id='answer-label-1816564' class=' answer'><span>Option A<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469919[]' id='answer-id-1816565' class='answer   answerof-469919 ' value='1816565'   \/><label for='answer-id-1816565' id='answer-label-1816565' class=' answer'><span>Option B<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469919[]' id='answer-id-1816566' class='answer   answerof-469919 ' value='1816566'   \/><label for='answer-id-1816566' id='answer-label-1816566' class=' answer'><span>Option C<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469919[]' id='answer-id-1816567' class='answer   answerof-469919 ' value='1816567'   \/><label for='answer-id-1816567' id='answer-label-1816567' class=' answer'><span>Option D<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-15' style=';'><div id='questionWrap-15'  class='   watupro-question-id-469920'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>15. <\/span>Which of the following statements is not true regarding the auditor's responsibility for subsequent <br \/>\r<br>events?<\/div><input type='hidden' name='question_id[]' id='qID_15' value='469920' \/><input type='hidden' id='answerType469920' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469920[]' id='answer-id-1816568' class='answer   answerof-469920 ' value='1816568'   \/><label for='answer-id-1816568' id='answer-label-1816568' class=' answer'><span>The auditor has an active responsibility to make continuing inquiries between the date of the auditor's report and the date on which the report is submitted.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469920[]' id='answer-id-1816569' class='answer   answerof-469920 ' value='1816569'   \/><label for='answer-id-1816569' id='answer-label-1816569' class=' answer'><span>The auditor has an active responsibility to make continuing inquiries between the date of the financial statements and the date of the auditor's report.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469920[]' id='answer-id-1816570' class='answer   answerof-469920 ' value='1816570'   \/><label for='answer-id-1816570' id='answer-label-1816570' class=' answer'><span>The auditor has an active responsibility to make continuing inquiries between the date of the financial statements and the date on which sufficient appropriate audit evidence has been obtained.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469920[]' id='answer-id-1816571' class='answer   answerof-469920 ' value='1816571'   \/><label for='answer-id-1816571' id='answer-label-1816571' class=' answer'><span>The auditor has no active responsibility to make continuing inquiries after the date of the auditor's report.<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-16' style=';'><div id='questionWrap-16'  class='   watupro-question-id-469921'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>16. <\/span>In which of the following situations would an auditor ordinarily choose between expressing an &quot;except for&quot; qualified opinion or an adverse opinion?<\/div><input type='hidden' name='question_id[]' id='qID_16' value='469921' \/><input type='hidden' id='answerType469921' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469921[]' id='answer-id-1816572' class='answer   answerof-469921 ' value='1816572'   \/><label for='answer-id-1816572' id='answer-label-1816572' class=' answer'><span>The auditor did not observe the entity's physical inventory and is unable to become satisfied as to its balance by other auditing procedures.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469921[]' id='answer-id-1816573' class='answer   answerof-469921 ' value='1816573'   \/><label for='answer-id-1816573' id='answer-label-1816573' class=' answer'><span>The financial statements fail to disclose information that is required by generally accepted accounting principles.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469921[]' id='answer-id-1816574' class='answer   answerof-469921 ' value='1816574'   \/><label for='answer-id-1816574' id='answer-label-1816574' class=' answer'><span>The auditor is asked to report only on the entity's balance sheet and not on the other basic financial statements.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469921[]' id='answer-id-1816575' class='answer   answerof-469921 ' value='1816575'   \/><label for='answer-id-1816575' id='answer-label-1816575' class=' answer'><span>Events disclosed in the financial statements cause the auditor to have substantial doubt about the entity's ability to continue as a going concern.<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-17' style=';'><div id='questionWrap-17'  class='   watupro-question-id-469922'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>17. <\/span>When an auditor believes there is substantial doubt about the ability of an entity to continue as a going concern, all of the following should be included in the audit documentation, except:<\/div><input type='hidden' name='question_id[]' id='qID_17' value='469922' \/><input type='hidden' id='answerType469922' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469922[]' id='answer-id-1816576' class='answer   answerof-469922 ' value='1816576'   \/><label for='answer-id-1816576' id='answer-label-1816576' class=' answer'><span>The conditions that gave rise to the substantial doubt.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469922[]' id='answer-id-1816577' class='answer   answerof-469922 ' value='1816577'   \/><label for='answer-id-1816577' id='answer-label-1816577' class=' answer'><span>The auditor's conclusion about whether substantial doubt remains or is alleviated.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469922[]' id='answer-id-1816578' class='answer   answerof-469922 ' value='1816578'   \/><label for='answer-id-1816578' id='answer-label-1816578' class=' answer'><span>Management's conclusion regarding whether substantial doubt remains or is alleviated.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469922[]' id='answer-id-1816579' class='answer   answerof-469922 ' value='1816579'   \/><label for='answer-id-1816579' id='answer-label-1816579' class=' answer'><span>The effect of the auditor's conclusion on the auditor's report.<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-18' style=';'><div id='questionWrap-18'  class='   watupro-question-id-469923'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>18. <\/span>An auditor most likely would express an unqualified opinion and would not add explanatory language to the report if the auditor:<\/div><input type='hidden' name='question_id[]' id='qID_18' value='469923' \/><input type='hidden' id='answerType469923' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469923[]' id='answer-id-1816580' class='answer   answerof-469923 ' value='1816580'   \/><label for='answer-id-1816580' id='answer-label-1816580' class=' answer'><span>Wishes to emphasize that the entity had significant transactions with related parties.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469923[]' id='answer-id-1816581' class='answer   answerof-469923 ' value='1816581'   \/><label for='answer-id-1816581' id='answer-label-1816581' class=' answer'><span>Concurs with the entity's change in its method of computing depreciation.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469923[]' id='answer-id-1816582' class='answer   answerof-469923 ' value='1816582'   \/><label for='answer-id-1816582' id='answer-label-1816582' class=' answer'><span>Discovers that supplementary information required by FASB has been omitted.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469923[]' id='answer-id-1816583' class='answer   answerof-469923 ' value='1816583'   \/><label for='answer-id-1816583' id='answer-label-1816583' class=' answer'><span>Believes that there is a probable likelihood of a material loss resulting from an uncertainty that is sufficiently supported and disclosed.<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-19' style=';'><div id='questionWrap-19'  class='   watupro-question-id-469924'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>19. <\/span>Under which of the following circumstances would an auditor's expression of an unqualified opinion be inappropriate?<\/div><input type='hidden' name='question_id[]' id='qID_19' value='469924' \/><input type='hidden' id='answerType469924' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469924[]' id='answer-id-1816584' class='answer   answerof-469924 ' value='1816584'   \/><label for='answer-id-1816584' id='answer-label-1816584' class=' answer'><span>The auditor is unable to obtain the audited financial statements of a significant subsidiary.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469924[]' id='answer-id-1816585' class='answer   answerof-469924 ' value='1816585'   \/><label for='answer-id-1816585' id='answer-label-1816585' class=' answer'><span>The financial statements are prepared on the entity's income tax basis.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469924[]' id='answer-id-1816586' class='answer   answerof-469924 ' value='1816586'   \/><label for='answer-id-1816586' id='answer-label-1816586' class=' answer'><span>There are significant deficiencies in the design and operation of the entity's internal control.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469924[]' id='answer-id-1816587' class='answer   answerof-469924 ' value='1816587'   \/><label for='answer-id-1816587' id='answer-label-1816587' class=' answer'><span>Analytical procedures indicate that many year-end account balances are not comparable with the prior year's balances.<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-20' style=';'><div id='questionWrap-20'  class='   watupro-question-id-469925'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>20. <\/span>In which of the following circumstances would an auditor not express an unqualified opinion?<\/div><input type='hidden' name='question_id[]' id='qID_20' value='469925' \/><input type='hidden' id='answerType469925' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469925[]' id='answer-id-1816588' class='answer   answerof-469925 ' value='1816588'   \/><label for='answer-id-1816588' id='answer-label-1816588' class=' answer'><span>There has been a material change between periods in accounting principles.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469925[]' id='answer-id-1816589' class='answer   answerof-469925 ' value='1816589'   \/><label for='answer-id-1816589' id='answer-label-1816589' class=' answer'><span>Quarterly financial data required by the SEC has been omitted.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469925[]' id='answer-id-1816590' class='answer   answerof-469925 ' value='1816590'   \/><label for='answer-id-1816590' id='answer-label-1816590' class=' answer'><span>The auditor wishes to emphasize an unusually important subsequent event.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469925[]' id='answer-id-1816591' class='answer   answerof-469925 ' value='1816591'   \/><label for='answer-id-1816591' id='answer-label-1816591' class=' answer'><span>The auditor is unable to obtain audited financial statements of a consolidated investee.<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-21' style=';'><div id='questionWrap-21'  class='   watupro-question-id-469926'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>21. <\/span>An auditor would express an unqualified opinion with an explanatory paragraph added to the auditor's report for: <br \/>\r<br><br><img decoding=\"async\" width=334 height=120 id=\"\u56fe\u7247 86\" src=\"https:\/\/www.dumpsbase.com\/freedumps\/wp-content\/uploads\/2026\/04\/image002-7.jpg\"><br><\/div><input type='hidden' name='question_id[]' id='qID_21' value='469926' \/><input type='hidden' id='answerType469926' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469926[]' id='answer-id-1816592' class='answer   answerof-469926 ' value='1816592'   \/><label for='answer-id-1816592' id='answer-label-1816592' class=' answer'><span>Option A<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469926[]' id='answer-id-1816593' class='answer   answerof-469926 ' value='1816593'   \/><label for='answer-id-1816593' id='answer-label-1816593' class=' answer'><span>Option B<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469926[]' id='answer-id-1816594' class='answer   answerof-469926 ' value='1816594'   \/><label for='answer-id-1816594' id='answer-label-1816594' class=' answer'><span>Option C<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469926[]' id='answer-id-1816595' class='answer   answerof-469926 ' value='1816595'   \/><label for='answer-id-1816595' id='answer-label-1816595' class=' answer'><span>Option D<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-22' style=';'><div id='questionWrap-22'  class='   watupro-question-id-469927'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>22. <\/span>If a publicly held company issues financial statements that purport to present its financial position and results of operations but omits the statement of cash flows, the auditor ordinarily will express a(an):<\/div><input type='hidden' name='question_id[]' id='qID_22' value='469927' \/><input type='hidden' id='answerType469927' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469927[]' id='answer-id-1816596' class='answer   answerof-469927 ' value='1816596'   \/><label for='answer-id-1816596' id='answer-label-1816596' class=' answer'><span>Disclaimer of opinion.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469927[]' id='answer-id-1816597' class='answer   answerof-469927 ' value='1816597'   \/><label for='answer-id-1816597' id='answer-label-1816597' class=' answer'><span>Qualified opinion.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469927[]' id='answer-id-1816598' class='answer   answerof-469927 ' value='1816598'   \/><label for='answer-id-1816598' id='answer-label-1816598' class=' answer'><span>Review report.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469927[]' id='answer-id-1816599' class='answer   answerof-469927 ' value='1816599'   \/><label for='answer-id-1816599' id='answer-label-1816599' class=' answer'><span>Unqualified opinion with a separate explanatory paragraph.<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-23' style=';'><div id='questionWrap-23'  class='   watupro-question-id-469928'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>23. <\/span>Which of the following procedures most likely would assist an auditor in identifying conditions and events that may indicate substantial doubt about an entity's ability to continue as a going concern?<\/div><input type='hidden' name='question_id[]' id='qID_23' value='469928' \/><input type='hidden' id='answerType469928' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469928[]' id='answer-id-1816600' class='answer   answerof-469928 ' value='1816600'   \/><label for='answer-id-1816600' id='answer-label-1816600' class=' answer'><span>Performing cutoff tests of sales transactions with customers with long-standing receivable balances.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469928[]' id='answer-id-1816601' class='answer   answerof-469928 ' value='1816601'   \/><label for='answer-id-1816601' id='answer-label-1816601' class=' answer'><span>Evaluating the entity's procedures for identifying and recording related party transactions.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469928[]' id='answer-id-1816602' class='answer   answerof-469928 ' value='1816602'   \/><label for='answer-id-1816602' id='answer-label-1816602' class=' answer'><span>Inspecting title documents to verify whether any real property is pledged as collateral.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469928[]' id='answer-id-1816603' class='answer   answerof-469928 ' value='1816603'   \/><label for='answer-id-1816603' id='answer-label-1816603' class=' answer'><span>Inquiring of the entity's legal counsel about litigation, claims, and assessments.<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-24' style=';'><div id='questionWrap-24'  class='   watupro-question-id-469929'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>24. <\/span>An auditor may report on condensed financial statements that are derived from complete financial statements if the:<\/div><input type='hidden' name='question_id[]' id='qID_24' value='469929' \/><input type='hidden' id='answerType469929' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469929[]' id='answer-id-1816604' class='answer   answerof-469929 ' value='1816604'   \/><label for='answer-id-1816604' id='answer-label-1816604' class=' answer'><span>Condensed financial statements are distributed to stockholders along with the complete financial statements.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469929[]' id='answer-id-1816605' class='answer   answerof-469929 ' value='1816605'   \/><label for='answer-id-1816605' id='answer-label-1816605' class=' answer'><span>Auditor describes the additional procedures performed on the condensed financial statements.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469929[]' id='answer-id-1816606' class='answer   answerof-469929 ' value='1816606'   \/><label for='answer-id-1816606' id='answer-label-1816606' class=' answer'><span>Auditor indicates whether the information in the condensed financial statements is fairly stated in all material respects in relation to the complete financial statements from which it has been derived.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469929[]' id='answer-id-1816607' class='answer   answerof-469929 ' value='1816607'   \/><label for='answer-id-1816607' id='answer-label-1816607' class=' answer'><span>Condensed financial statements are presented in comparative form with the prior year's condensed financial statements.<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-25' style=';'><div id='questionWrap-25'  class='   watupro-question-id-469930'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>25. <\/span>Which of the following is not true regarding an engagement to provide a written report on the application of accounting principles?<\/div><input type='hidden' name='question_id[]' id='qID_25' value='469930' \/><input type='hidden' id='answerType469930' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469930[]' id='answer-id-1816608' class='answer   answerof-469930 ' value='1816608'   \/><label for='answer-id-1816608' id='answer-label-1816608' class=' answer'><span>An accountant is prohibited from providing a report on the application of accounting principles to a transaction not involving the facts and circumstances of a specific entity.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469930[]' id='answer-id-1816609' class='answer   answerof-469930 ' value='1816609'   \/><label for='answer-id-1816609' id='answer-label-1816609' class=' answer'><span>The accountant's written report on the application of accounting principles should include an identification of the specific entity involved.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469930[]' id='answer-id-1816610' class='answer   answerof-469930 ' value='1816610'   \/><label for='answer-id-1816610' id='answer-label-1816610' class=' answer'><span>An accountant is prohibited from providing a report on the application of accounting principles to a proposed future transaction involving the facts and circumstances of a specific entity.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469930[]' id='answer-id-1816611' class='answer   answerof-469930 ' value='1816611'   \/><label for='answer-id-1816611' id='answer-label-1816611' class=' answer'><span>The accountant's written report on the application of accounting principles should include a paragraph restricting the use of the report.<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-26' style=';'><div id='questionWrap-26'  class='   watupro-question-id-469931'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>26. <\/span>A CPA's standard report on audited financial statements would be inappropriate if it referred to:<\/div><input type='hidden' name='question_id[]' id='qID_26' value='469931' \/><input type='hidden' id='answerType469931' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469931[]' id='answer-id-1816612' class='answer   answerof-469931 ' value='1816612'   \/><label for='answer-id-1816612' id='answer-label-1816612' class=' answer'><span>Management's responsibility for the financial statements.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469931[]' id='answer-id-1816613' class='answer   answerof-469931 ' value='1816613'   \/><label for='answer-id-1816613' id='answer-label-1816613' class=' answer'><span>An assessment of the entity's accounting principles.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469931[]' id='answer-id-1816614' class='answer   answerof-469931 ' value='1816614'   \/><label for='answer-id-1816614' id='answer-label-1816614' class=' answer'><span>Significant estimates made by management.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469931[]' id='answer-id-1816615' class='answer   answerof-469931 ' value='1816615'   \/><label for='answer-id-1816615' id='answer-label-1816615' class=' answer'><span>The CPA's assessment of sampling risk factors.<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-27' style=';'><div id='questionWrap-27'  class='   watupro-question-id-469932'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>27. <\/span>When management does not provide reasonable justification that a change in accounting principle is preferable and it presents comparative financial statements, the auditor should express a qualified opinion:<\/div><input type='hidden' name='question_id[]' id='qID_27' value='469932' \/><input type='hidden' id='answerType469932' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469932[]' id='answer-id-1816616' class='answer   answerof-469932 ' value='1816616'   \/><label for='answer-id-1816616' id='answer-label-1816616' class=' answer'><span>Only in the year of the accounting principle change.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469932[]' id='answer-id-1816617' class='answer   answerof-469932 ' value='1816617'   \/><label for='answer-id-1816617' id='answer-label-1816617' class=' answer'><span>Each year that the financial statements initially reflecting the change are presented.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469932[]' id='answer-id-1816618' class='answer   answerof-469932 ' value='1816618'   \/><label for='answer-id-1816618' id='answer-label-1816618' class=' answer'><span>Each year until management changes back to the accounting principle formerly used.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469932[]' id='answer-id-1816619' class='answer   answerof-469932 ' value='1816619'   \/><label for='answer-id-1816619' id='answer-label-1816619' class=' answer'><span>Only if the change is to an accounting principle that is not generally accepted.<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-28' style=';'><div id='questionWrap-28'  class='   watupro-question-id-469933'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>28. <\/span>An auditor is considering whether the omission of a substantive procedure considered necessary at the time of an audit may impair the auditor's present ability to support the previously expressed opinion. <br \/>\r<br>The auditor need not apply the omitted procedure if the:<\/div><input type='hidden' name='question_id[]' id='qID_28' value='469933' \/><input type='hidden' id='answerType469933' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469933[]' id='answer-id-1816620' class='answer   answerof-469933 ' value='1816620'   \/><label for='answer-id-1816620' id='answer-label-1816620' class=' answer'><span>Financial statements and auditor's report were not distributed beyond management and the board of directors.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469933[]' id='answer-id-1816621' class='answer   answerof-469933 ' value='1816621'   \/><label for='answer-id-1816621' id='answer-label-1816621' class=' answer'><span>Auditor's previously expressed opinion was qualified because of a departure from GAA<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469933[]' id='answer-id-1816622' class='answer   answerof-469933 ' value='1816622'   \/><label for='answer-id-1816622' id='answer-label-1816622' class=' answer'><span>Results of other procedures that were applied tend to compensate for the procedure omitted.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469933[]' id='answer-id-1816623' class='answer   answerof-469933 ' value='1816623'   \/><label for='answer-id-1816623' id='answer-label-1816623' class=' answer'><span>Omission is due to unreasonable delays by client personnel in providing data on a timely basis.<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-29' style=';'><div id='questionWrap-29'  class='   watupro-question-id-469934'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>29. <\/span>Comparative financial statements include the financial statements of the prior year that were audited by a predecessor auditor whose report is not presented. <br \/>\r<br>If the predecessor's report was qualified, the successor should:<\/div><input type='hidden' name='question_id[]' id='qID_29' value='469934' \/><input type='hidden' id='answerType469934' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469934[]' id='answer-id-1816624' class='answer   answerof-469934 ' value='1816624'   \/><label for='answer-id-1816624' id='answer-label-1816624' class=' answer'><span>Indicate the substantive reasons for the qualification in the predecessor auditor's opinion.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469934[]' id='answer-id-1816625' class='answer   answerof-469934 ' value='1816625'   \/><label for='answer-id-1816625' id='answer-label-1816625' class=' answer'><span>Request the client to reissue the predecessor's report on the prior year's statements.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469934[]' id='answer-id-1816626' class='answer   answerof-469934 ' value='1816626'   \/><label for='answer-id-1816626' id='answer-label-1816626' class=' answer'><span>Issue an updated comparative audit report indicating the division of responsibility.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469934[]' id='answer-id-1816627' class='answer   answerof-469934 ' value='1816627'   \/><label for='answer-id-1816627' id='answer-label-1816627' class=' answer'><span>Express an opinion only on the current year's statements and make no reference to the prior year's statements.<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-30' style=';'><div id='questionWrap-30'  class='   watupro-question-id-469935'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>30. <\/span>An auditor believes that there is substantial doubt about an entity's ability to continue as a going concern for a reasonable period of time. In evaluating the entity's plans for dealing with the adverse effects of future conditions and events, the auditor most likely would consider, as a mitigating factor, the entity's plans to:<\/div><input type='hidden' name='question_id[]' id='qID_30' value='469935' \/><input type='hidden' id='answerType469935' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469935[]' id='answer-id-1816628' class='answer   answerof-469935 ' value='1816628'   \/><label for='answer-id-1816628' id='answer-label-1816628' class=' answer'><span>Repurchase the entity's stock at a price below its book value.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469935[]' id='answer-id-1816629' class='answer   answerof-469935 ' value='1816629'   \/><label for='answer-id-1816629' id='answer-label-1816629' class=' answer'><span>Issue stock options to key executives.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469935[]' id='answer-id-1816630' class='answer   answerof-469935 ' value='1816630'   \/><label for='answer-id-1816630' id='answer-label-1816630' class=' answer'><span>Lease rather than purchase operating facilities.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469935[]' id='answer-id-1816631' class='answer   answerof-469935 ' value='1816631'   \/><label for='answer-id-1816631' id='answer-label-1816631' class=' answer'><span>Accelerate the due date of an existing mortgage.<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-31' style=';'><div id='questionWrap-31'  class='   watupro-question-id-469936'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>31. <\/span>When disclaiming an opinion due to a client-imposed scope limitation, an auditor should indicate in a separate paragraph why the audit did not comply with generally accepted auditing standards. <br \/>\r<br>The auditor should also omit the: <br \/>\r<br><br><img decoding=\"async\" width=211 height=108 id=\"\u56fe\u7247 82\" src=\"https:\/\/www.dumpsbase.com\/freedumps\/wp-content\/uploads\/2026\/04\/image006-8.jpg\"><br><\/div><input type='hidden' name='question_id[]' id='qID_31' value='469936' \/><input type='hidden' id='answerType469936' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469936[]' id='answer-id-1816632' class='answer   answerof-469936 ' value='1816632'   \/><label for='answer-id-1816632' id='answer-label-1816632' class=' answer'><span>Option A<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469936[]' id='answer-id-1816633' class='answer   answerof-469936 ' value='1816633'   \/><label for='answer-id-1816633' id='answer-label-1816633' class=' answer'><span>Option B<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469936[]' id='answer-id-1816634' class='answer   answerof-469936 ' value='1816634'   \/><label for='answer-id-1816634' id='answer-label-1816634' class=' answer'><span>Option C<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469936[]' id='answer-id-1816635' class='answer   answerof-469936 ' value='1816635'   \/><label for='answer-id-1816635' id='answer-label-1816635' class=' answer'><span>Option D<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-32' style=';'><div id='questionWrap-32'  class='   watupro-question-id-469937'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>32. <\/span>Restrictions imposed by a client prohibit the observation of physical inventories, which account for 35% of all assets. Alternative audit procedures cannot be applied, although the auditor was able to examine satisfactory evidence for all other items in the financial statements. <br \/>\r<br>The auditor should issue a(an):<\/div><input type='hidden' name='question_id[]' id='qID_32' value='469937' \/><input type='hidden' id='answerType469937' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469937[]' id='answer-id-1816636' class='answer   answerof-469937 ' value='1816636'   \/><label for='answer-id-1816636' id='answer-label-1816636' class=' answer'><span>&quot;Except for&quot; qualified opinion.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469937[]' id='answer-id-1816637' class='answer   answerof-469937 ' value='1816637'   \/><label for='answer-id-1816637' id='answer-label-1816637' class=' answer'><span>Disclaimer of opinion.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469937[]' id='answer-id-1816638' class='answer   answerof-469937 ' value='1816638'   \/><label for='answer-id-1816638' id='answer-label-1816638' class=' answer'><span>Unqualified opinion with a separate explanatory paragraph.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469937[]' id='answer-id-1816639' class='answer   answerof-469937 ' value='1816639'   \/><label for='answer-id-1816639' id='answer-label-1816639' class=' answer'><span>Unqualified opinion with an in the scope paragraph.<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-33' style=';'><div id='questionWrap-33'  class='   watupro-question-id-469938'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>33. <\/span>When an auditor expresses an adverse opinion, the opinion paragraph should include:<\/div><input type='hidden' name='question_id[]' id='qID_33' value='469938' \/><input type='hidden' id='answerType469938' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469938[]' id='answer-id-1816640' class='answer   answerof-469938 ' value='1816640'   \/><label for='answer-id-1816640' id='answer-label-1816640' class=' answer'><span>The principal effects of the departure from generally accepted accounting principles.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469938[]' id='answer-id-1816641' class='answer   answerof-469938 ' value='1816641'   \/><label for='answer-id-1816641' id='answer-label-1816641' class=' answer'><span>A direct reference to a separate paragraph disclosing the basis for the opinion.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469938[]' id='answer-id-1816642' class='answer   answerof-469938 ' value='1816642'   \/><label for='answer-id-1816642' id='answer-label-1816642' class=' answer'><span>The substantive reasons for the financial statements being misleading.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469938[]' id='answer-id-1816643' class='answer   answerof-469938 ' value='1816643'   \/><label for='answer-id-1816643' id='answer-label-1816643' class=' answer'><span>A description of the uncertainty or scope limitation that prevents an unqualified opinion.<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-34' style=';'><div id='questionWrap-34'  class='   watupro-question-id-469939'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>34. <\/span>An auditor was unable to obtain sufficient appropriate audit evidence concerning certain transactions due to an inadequacy in the entity's accounting records. <br \/>\r<br>The auditor would choose between issuing a(an):<\/div><input type='hidden' name='question_id[]' id='qID_34' value='469939' \/><input type='hidden' id='answerType469939' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469939[]' id='answer-id-1816644' class='answer   answerof-469939 ' value='1816644'   \/><label for='answer-id-1816644' id='answer-label-1816644' class=' answer'><span>Qualified opinion and an unqualified opinion with an explanatory paragraph.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469939[]' id='answer-id-1816645' class='answer   answerof-469939 ' value='1816645'   \/><label for='answer-id-1816645' id='answer-label-1816645' class=' answer'><span>Unqualified opinion with an explanatory paragraph and an adverse opinion.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469939[]' id='answer-id-1816646' class='answer   answerof-469939 ' value='1816646'   \/><label for='answer-id-1816646' id='answer-label-1816646' class=' answer'><span>Adverse opinion and a disclaimer of opinion.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469939[]' id='answer-id-1816647' class='answer   answerof-469939 ' value='1816647'   \/><label for='answer-id-1816647' id='answer-label-1816647' class=' answer'><span>Disclaimer of opinion and a qualified opinion.<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-35' style=';'><div id='questionWrap-35'  class='   watupro-question-id-469940'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>35. <\/span>In May X4, an auditor reissues the auditor's report on the X2 financial statements at a continuing client's request. The X2 financial statements are not restated and the auditor does not revise the wording of the report. <br \/>\r<br>The auditor should:<\/div><input type='hidden' name='question_id[]' id='qID_35' value='469940' \/><input type='hidden' id='answerType469940' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469940[]' id='answer-id-1816648' class='answer   answerof-469940 ' value='1816648'   \/><label for='answer-id-1816648' id='answer-label-1816648' class=' answer'><span>Dual date the reissued report.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469940[]' id='answer-id-1816649' class='answer   answerof-469940 ' value='1816649'   \/><label for='answer-id-1816649' id='answer-label-1816649' class=' answer'><span>Use the release date of the reissued report.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469940[]' id='answer-id-1816650' class='answer   answerof-469940 ' value='1816650'   \/><label for='answer-id-1816650' id='answer-label-1816650' class=' answer'><span>Use the original report date on the reissued report.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469940[]' id='answer-id-1816651' class='answer   answerof-469940 ' value='1816651'   \/><label for='answer-id-1816651' id='answer-label-1816651' class=' answer'><span>Use the current-period auditor's report date on the reissued report.<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-36' style=';'><div id='questionWrap-36'  class='   watupro-question-id-469941'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>36. <\/span>When an independent CPA assists in preparing the financial statements of a publicly held entity, but has not audited or reviewed them, the CPA should issue a disclaimer of opinion. In such situations, the CPA has no responsibility to apply any procedures beyond:<\/div><input type='hidden' name='question_id[]' id='qID_36' value='469941' \/><input type='hidden' id='answerType469941' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469941[]' id='answer-id-1816652' class='answer   answerof-469941 ' value='1816652'   \/><label for='answer-id-1816652' id='answer-label-1816652' class=' answer'><span>Documenting that internal control is not being relied on.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469941[]' id='answer-id-1816653' class='answer   answerof-469941 ' value='1816653'   \/><label for='answer-id-1816653' id='answer-label-1816653' class=' answer'><span>Reading the financial statements for obvious material misstatements.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469941[]' id='answer-id-1816654' class='answer   answerof-469941 ' value='1816654'   \/><label for='answer-id-1816654' id='answer-label-1816654' class=' answer'><span>Ascertaining whether the financial statements are in conformity with GAA<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469941[]' id='answer-id-1816655' class='answer   answerof-469941 ' value='1816655'   \/><label for='answer-id-1816655' id='answer-label-1816655' class=' answer'><span>Determining whether management has elected to omit substantially all required disclosures.<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-37' style=';'><div id='questionWrap-37'  class='   watupro-question-id-469942'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>37. <\/span>On March 15, X4, Kent, CPA, issued an unqualified opinion on a client's audited financial statements for the year ended December 31, X3. On May 4, X4, Kent's internal inspection program disclosed that engagement personnel failed to observe the client's physical inventory. Omission of this procedure impairs Kent's present ability to support the unqualified opinion. <br \/>\r<br>If the stockholders are currently relying on the opinion, Kent should first:<\/div><input type='hidden' name='question_id[]' id='qID_37' value='469942' \/><input type='hidden' id='answerType469942' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469942[]' id='answer-id-1816656' class='answer   answerof-469942 ' value='1816656'   \/><label for='answer-id-1816656' id='answer-label-1816656' class=' answer'><span>Advise management to disclose to the stockholders that Kent's unqualified opinion should not be relied on.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469942[]' id='answer-id-1816657' class='answer   answerof-469942 ' value='1816657'   \/><label for='answer-id-1816657' id='answer-label-1816657' class=' answer'><span>Undertake to apply alternative procedures that would provide a satisfactory basis for the unqualified opinion.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469942[]' id='answer-id-1816658' class='answer   answerof-469942 ' value='1816658'   \/><label for='answer-id-1816658' id='answer-label-1816658' class=' answer'><span>Reissue the auditor's report and add an explanatory paragraph describing the departure from generally accepted auditing standards.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469942[]' id='answer-id-1816659' class='answer   answerof-469942 ' value='1816659'   \/><label for='answer-id-1816659' id='answer-label-1816659' class=' answer'><span>Compensate for the omitted procedure by performing tests of controls to reduce audit risk to a sufficiently low level.<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-38' style=';'><div id='questionWrap-38'  class='   watupro-question-id-469943'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>38. <\/span>In the auditor's report, the principal auditor decides not to make reference to another CPA who audited a client's subsidiary. <br \/>\r<br>The principal auditor could justify this decision if, among other requirements, the principal auditor:<\/div><input type='hidden' name='question_id[]' id='qID_38' value='469943' \/><input type='hidden' id='answerType469943' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469943[]' id='answer-id-1816660' class='answer   answerof-469943 ' value='1816660'   \/><label for='answer-id-1816660' id='answer-label-1816660' class=' answer'><span>Issues an unqualified opinion on the consolidated financial statements.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469943[]' id='answer-id-1816661' class='answer   answerof-469943 ' value='1816661'   \/><label for='answer-id-1816661' id='answer-label-1816661' class=' answer'><span>Learns that the other CPA issued an unqualified opinion on the subsidiary's financial statements.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469943[]' id='answer-id-1816662' class='answer   answerof-469943 ' value='1816662'   \/><label for='answer-id-1816662' id='answer-label-1816662' class=' answer'><span>Is unable to review the audit programs and audit documentation of the other CP<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469943[]' id='answer-id-1816663' class='answer   answerof-469943 ' value='1816663'   \/><label for='answer-id-1816663' id='answer-label-1816663' class=' answer'><span>Is satisfied as to the independence and professional reputation of the other CP<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-39' style=';'><div id='questionWrap-39'  class='   watupro-question-id-469944'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>39. <\/span>Green, CPA, was engaged to audit the financial statements of Essex Co. after its fiscal year had ended. The timing of Green's appointment as auditor and the start of fieldwork made confirmation of accounts receivable by direct communication with the debtors ineffective. However, Green applied other procedures and was satisfied as to the reasonableness of the account balances. <br \/>\r<br>Green's auditor's report most likely contained a(an):<\/div><input type='hidden' name='question_id[]' id='qID_39' value='469944' \/><input type='hidden' id='answerType469944' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469944[]' id='answer-id-1816664' class='answer   answerof-469944 ' value='1816664'   \/><label for='answer-id-1816664' id='answer-label-1816664' class=' answer'><span>Unqualified opinion.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469944[]' id='answer-id-1816665' class='answer   answerof-469944 ' value='1816665'   \/><label for='answer-id-1816665' id='answer-label-1816665' class=' answer'><span>Unqualified opinion with an explanatory paragraph.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469944[]' id='answer-id-1816666' class='answer   answerof-469944 ' value='1816666'   \/><label for='answer-id-1816666' id='answer-label-1816666' class=' answer'><span>Qualified opinion due to a scope limitation.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469944[]' id='answer-id-1816667' class='answer   answerof-469944 ' value='1816667'   \/><label for='answer-id-1816667' id='answer-label-1816667' class=' answer'><span>Qualified opinion due to a departure from generally accepted auditing standards.<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div class='watu-question ' id='question-40' style=';'><div id='questionWrap-40'  class='   watupro-question-id-469945'>\n\t\t\t<div class='question-content'><div><span class='watupro_num'>40. <\/span>Subsequent to the issuance of an auditor's report, the auditor became aware of facts existing at the report date that would have affected the report had the auditor then been aware of such facts. After determining that the information is reliable, the auditor should next:<\/div><input type='hidden' name='question_id[]' id='qID_40' value='469945' \/><input type='hidden' id='answerType469945' value='radio'><!-- end question-content--><\/div><div class='question-choices watupro-choices-columns '><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469945[]' id='answer-id-1816668' class='answer   answerof-469945 ' value='1816668'   \/><label for='answer-id-1816668' id='answer-label-1816668' class=' answer'><span>Determine whether there are persons relying or likely to rely on the financial statements who would attach importance to the information.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469945[]' id='answer-id-1816669' class='answer   answerof-469945 ' value='1816669'   \/><label for='answer-id-1816669' id='answer-label-1816669' class=' answer'><span>Request that management disclose the newly discovered information by issuing revised financial statements.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469945[]' id='answer-id-1816670' class='answer   answerof-469945 ' value='1816670'   \/><label for='answer-id-1816670' id='answer-label-1816670' class=' answer'><span>Issue revised pro forma financial statements taking into consideration the newly discovered information.<\/span><\/label><\/div><div class='watupro-question-choice  ' dir='auto' ><input type='radio' name='answer-469945[]' id='answer-id-1816671' class='answer   answerof-469945 ' value='1816671'   \/><label for='answer-id-1816671' id='answer-label-1816671' class=' answer'><span>Give public notice that the auditor is no longer associated with financial statements.<\/span><\/label><\/div><!-- end question-choices--><\/div><!-- end questionWrap--><\/div><\/div><div style='display:none' id='question-41'>\n\t<div class='question-content'>\n\t\t<img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.dumpsbase.com\/freedumps\/wp-content\/plugins\/watupro\/img\/loading.gif\" width=\"16\" height=\"16\" alt=\"Loading...\" title=\"Loading...\" \/>&nbsp;Loading...\t<\/div>\n<\/div>\n\n<br \/>\n\t\n\t\t\t<div class=\"watupro_buttons flex \" id=\"watuPROButtons12006\" >\n\t\t  <div id=\"prev-question\" style=\"display:none;\"><input type=\"button\" value=\"&lt; 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   \t \n<\/script>\n","protected":false},"excerpt":{"rendered":"<p>When coming for your Certified Public Accountant (CPA) exam, you must complete three core sections and one discipline section in total. And the CPA Auditing and Attestation (AUD) is one of the core sections, focusing on audit procedures, internal controls, and audit reporting. 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