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Table of Contents
  1. When there is uncertainty about a company's ability to continue as a going concern?
  2. What are the indicators of going concern?
  3. Is a material uncertainty An emphasis of matter?
  4. How do I report a going concern?
  5. What is emphasis of matter paragraph?
  6. What is the difference between emphasis of matter and other matter paragraph?
  7. Where does the explanatory paragraph go?
  8. Is emphasis of matter a qualified opinion?
  9. What is a qualified opinion?
  10. What is unmodified opinion?
  11. Under which of the following circumstances would a disclaimer of opinion not be appropriate?
  12. Which case would an unmodified opinion not be appropriate?
  13. Under which of the following circumstances would an adverse opinion be most appropriate?
  14. When forming an opinion on the financial statements the auditor is least likely to evaluate whether?
  15. What is the general character of the three generally accepted auditing standards?
  16. Under which of the following situations will a scope limitation always be sufficient to preclude an unmodified opinion?
  17. Which correctly describes the relationship between the Pcaob and the SEC?
  18. Which of the following is an inherent limitation of internal control?
  19. What is the difference between audited and reviewed financial statements?
  20. Which of the following represents an inherent limitation of internal controls?
  21. Which of the following is a component of internal control?
  22. Which of the following is an objective of internal control quizlet?
  23. Which of the following are considered control environment factors?
  24. Who is responsible for internal controls within an organization?
  25. Which of the following is an example of separation of duties in a good system of internal control?
  26. Which of the following is a component part of the COSO's internal control framework?
  27. What are the 3 types of internal controls?
  28. What are the five main objectives of internal control?

When there is uncertainty about a company’s ability to continue as a going concern?

As defined in GAAP, substantial doubt about a company’s ability to continue as a going concern exists when relevant conditions and events, considered in the aggregate, indicate that it is probable that the company will be unable to meet its obligations as they become due within one year after the date that the …

What are the indicators of going concern?

Indicators of a Going Concern Problem Indicators of a potential going concern problem are: Negative trends. Can include declining sales, increasing costs, recurring losses, adverse financial ratios, and so forth.

Is a material uncertainty An emphasis of matter?

[Proposed] ISA 570 (Redrafted), “Going Concern” requires the auditor to include an Emphasis of Matter paragraph in the auditor’s report on financial statements to highlight the existence of a material uncertainty regarding an entity’s ability to continue as a going concern.

How do I report a going concern?

The auditor cannot predict such future events or conditions. Accordingly, the absence of any reference to a material uncertainty about the entity’s ability to continue as a going concern in an auditor’s report cannot be viewed as a guarantee as to the entity’s ability to continue as a going concern.

What is emphasis of matter paragraph?

(a) Emphasis of Matter paragraph means a paragraph included in the auditor’s report that refers to a matter appropriately presented or disclosed in the financial report that, in the auditor’s judgement, is of such importance that it is fundamental to users’ understanding of the financial report.

What is the difference between emphasis of matter and other matter paragraph?

The distinguishing factor between two paragraphs is that one (emphasis of matter) is about the matters already disclosed in the financial statements and the second (other matter) is about matters that are not disclosed in the financial statements.

Where does the explanatory paragraph go?

How do you know when to put the paragraph before or after the opinion paragraph? If it changes the opinion it goes before, if the opinion is unchanged but needs explanation it goes after. Hope that helps! If it changes the opinion it goes before, if the opinion is unchanged but needs explanation it goes after.

Is emphasis of matter a qualified opinion?

4 The use of an emphasis of matter paragraph is not a substitute for issuing a qualified opinion or adverse opinion on compliance with the national financial reporting framework when disclosures as to compliance with IFRSs are misleading such that the financial statements fail to comply with the national financial …

What is a qualified opinion?

A qualified opinion is a reflection of the auditor’s inability to give an unqualified, or clean, audit opinion. An unqualified opinion is issued if the financial statements are presumed to be free from material misstatements. … A qualified opinion is still acceptable to most lenders, creditors, and investors.

What is unmodified opinion?

Unmodified opinion is the opinion where auditor expresses an opinion that financial statements are presented, in all material respects, in accordance with applicable financial reporting framework.

Under which of the following circumstances would a disclaimer of opinion not be appropriate?

a disclaimer of opinion on the entity’s financial statements. In which of the following circumstances would a qualified opinion not be appropriate? The auditors lack independence with respect to the audited entity. … The financial statements fail to contain adequate disclosure of related-party transactions.

Which case would an unmodified opinion not be appropriate?

In which case would an unmodified opinion not be appropriate? A material related party transaction has occurred and has been accounted for appropriately, but it has not been adequately disclosed in the financial statements. An unmodified opinion, a qualified opinion, An adverse opinion, and disclaimer of opinion.

Under which of the following circumstances would an adverse opinion be most appropriate?

Under which of the following circumstances would an adverse opinion be most appropriate? An adverse opinion is required when serious GAAP problem exist (GAAP requires that property, plant and equipment be stated at cost les accumulated depreciation. )

When forming an opinion on the financial statements the auditor is least likely to evaluate whether?

The financial statements are prepared, in all material respects, in accordance with the requirements of the applicable financial reporting framework. When forming an opinion on the financial statements, the auditor is least likely to evaluate whether: Earnings forecasts by investors are met.

What is the general character of the three generally accepted auditing standards?

What is the general character of the three generally accepted auditing standards classified as general standards? Criteria for competence, independence, and professional care of individuals performing the audit.

Under which of the following situations will a scope limitation always be sufficient to preclude an unmodified opinion?

A scope limitation sufficient to preclude an unmodified opinion always will result when management: refuses to acknowledge its responsibility for the fair presentation of the financial statements in conformity with GAAP. … What is the most likely source of the following statement as an emphasis of matter?

Which correctly describes the relationship between the Pcaob and the SEC?

Which correctly describes the relationship between the PCAOB and the SEC? … The PCAOB is subject to oversight by the SEC, and only accounting firms registered with the PCAOB may prepare audit reports for SEC issuers.

Which of the following is an inherent limitation of internal control?

Inherent limitations of internal control include collusion, human error, and management override.

What is the difference between audited and reviewed financial statements?

An audit requires the CPA to gather sufficient and reliable evidence regarding the information provided in the financial statement. … A review of an organization’s financial statements provides a report issued by a CPA which expresses that the financial statements are free from material misstatement.

Which of the following represents an inherent limitation of internal controls?

An inherent limitation to internal control is the fact that controls can be circumvented by management override.

Which of the following is a component of internal control?

The five components of the internal control framework are control environment, risk assessment, control activities, information and communication, and monitoring.

Which of the following is an objective of internal control quizlet?

What are the objectives of internal control? Safeguard assets (protect from theft), encourage employees to follow company policies and laws/regulations (ex. workplace safety), promote operational efficiency, ensure accurate reliable accounting records.

Which of the following are considered control environment factors?

Which of the following are considered control environment elements? Achievement of the objectives of internal control. Authorization, recording, and custody. Internal control is a function of management, and effective control is based upon the concept of charge and discharge of responsibility and duty.

Who is responsible for internal controls within an organization?

Management is responsible for establishing internal controls. In order to maintain effective internal controls, management should: Maintain adequate policies and procedures; Communicate these policies and procedures; and.

Which of the following is an example of separation of duties in a good system of internal control?

Which of the following is an example of separation of duties in a good system of internal control? The individual who receives the inventory does not have access to the accounting records. their normal collection, even if longer than a year, is part of the normal operating cycle.

Which of the following is a component part of the COSO’s internal control framework?

The five components of COSOcontrol environment, risk assessment, information and communication, monitoring activities, and existing control activities – are often referred to by the acronym C.R.I.M.E. To get the most out of your SOC 1 compliance, you need to understand what each of these components includes.

What are the 3 types of internal controls?

What are the 3 Types of Internal Controls?

  • There are three main types of internal controls: detective, preventative, and corrective. …
  • All organizations are subject to threats occurring that unfavorably impact the organization and affect asset loss. …
  • Unfortunately, processes and control activities are not perfect, and mistakes and problems will be found.

What are the five main objectives of internal control?

The control objectives include authorization, completeness, accuracy, validity, physical safeguards and security, error handling and segregation of duties.