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ACCT 444 Week 8 Final Exam

ACCT 444 DEVRY WEEK 8 FINAL EXAM

ACCT 444 DeVry Week 8 Final Exam

Page 1

Question 1.1. (TCO 1)

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 (Points : 5)

objective judgment.

independent integrity.

professional skepticism.

impartial conservatism.

Question 2.2. (TCO 2)

When an auditor submits a document containing audited financial statements to a client, and those financial statements include supplementary information required by GAAP, the auditor may choose any of the following options, except (Points : 5)

express an opinion on the information, if he or she has been engaged to examine such information.

express negative assurance on the information, if review procedures have been appropriately performed.

report on whether the information is fairly stated in relation to the financial statements taken as a whole, if appropriate procedures have been applied.

disclaim an opinion on the information.

Question 3.3. (TCO 2)

In which of the following situations would an auditor ordinarily choose between expressing a qualified opinion or an adverse opinion? (Points : 5)

The auditor did not observe the entity’s physical inventory and is unable to become satisfied about its balance by other auditing procedures.

Conditions that cause the auditor to have substantial doubt about the entity’s ability to continue as a concern are inadequately disclosed.

There check here has been a change in accounting principles that has a material effect on the comparability of the entity’s financial statements.

The auditor is unable to apply necessary procedures concerning an investor’s share of an investee’s earnings recognized on the equity method.

Question 4.4. (TCO 3)

The phrase U.S. generally accepted accounting principles is an accounting term that (Points : 5)

includes broad guidelines click here of general application but not detailed practices and procedures.

encompasses the conventions, rules, and procedures necessary to define U.S. accepted accounting practice at a particular time.

provides a more info measure of conventions, rules, and procedures governed by the AICPA.

is included in the audit report to indicate that the audit has been conducted in accordance with generally accepted auditing standards (GAAS).

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