If the phrase "except for" is present in the opinion paragraph of the audit report, the auditor has issued a(n):
The term "explanatory paragraph" was replaced in the AICPA auditing standards with:
The first step to be followed when deciding the appropriate audit report in a given set of circumstances is to:
After the auditor determines whether any conditions exist which require a departure from a standard unqualified report, the next step in the decision process for audit reports is to:
The standard unqualified audit report:
Items that materially affect the comparability of financial statements generally require disclosure in the footnotes. If the client refuses to properly disclose the item, the auditor will most likely issue:
An audit of historical financial statements most commonly includes the:
If most or all users' decisions that are based on the financial statements are likely to be significantly affected, the materiality level is:
When dealing with materiality and scope limitation conditions:
Auditing standards for public companies are established by the:
A CPA may wish to emphasize specific matters regarding the financial statements even though an unqualified opinion will be issued. Normally, such explanatory information is:
The standard unqualified audit report for public entities includes the following three paragraphs:
When there is uncertainty about a company's ability to continue as a going concern, the auditor's concern is the possibility that the client may not be able to continue its operations or meet its obligations for a "reasonable period of time." For this purpose, a reasonable period of time is considered not to exceed:
As a result of management's refusal to permit the auditor to physically examine inventory, the auditor must depart from the unqualified audit report because:
Which of the following is least likely to cause uncertainty about the ability of an entity to continue as a going concern?
Which of the following services are allowed by the SEC whenever a CPA also audits the company?
The CPA must not subordinate his or her professional judgment to that of others in any:
"Independence" in auditing means:
Of the four parts of the AICPA's Code of Professional Conduct, which part is enforceable?
Freedom from ________ means the absence of relationships that might interfere with objectivity or integrity.
A CPA firm:
The Sarbanes-Oxley Act requires a cooling off period of ________ before a member of an audit team can work for a client in a key management position?
The AICPA's Code of Professional Conduct states that a CPA should maintain integrity and objectivity. The term "objectivity" in the Code refers to a CPA's ability to:
Several months after an unqualified audit report was issued, the auditor discovers the financial statements were materially misstated. The client's CEO agrees that there are misstatements, but refuses to correct them. She claims that "confidentiality" prevents the CPA from informing anyone. Which of the following statements is correct?
When a member observes the profession's technical and ethical standards and strives to continually improve her competence and quality of services, she is exercising:
A CPA firm may charge a contingent fee for:
The AICPA's Code of Professional Conduct requires independence for all:
The Sarbanes-Oxley Act ________ a CPA firm from doing both bookkeeping and auditing services for the same public company client.
According to the Principles section of the Code of Professional Conduct, all members:
A six-step approach is often used to resolve an ethical dilemma. The first step in this process is to: