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This Question Presents Independent Factual Situations an Auditor Might Encounter

question 1048

Multiple Choice

This question presents independent factual situations an auditor might encounter in conducting an audit. List A represents the types of opinions the auditor ordinarily would issue. Select as the best answer for this item, the action the auditor normally would take. The types of opinions in List A may be selected once, more than once, or not at all. Assume: - The auditor is independent. - The auditor previously expressed an unqualified opinion on the prior year's financial statements. - Only single-year (not comparative) statements are presented for the current year. - The conditions for an unqualified opinion exist unless contradicted in the factual situations. -. The conditions stated in the factual situations are material. - No report modifications are to be made except in response to the factual situation. Item to Be Answered A principal auditor decides to take responsibility for the work of another CPA who audited a wholly-owned subsidiary of the entity and issued an unqualified opinion. The total assets and revenues of the subsidiary represent 17% and 18%, respectively, of the total assets and revenues of the entity being audited. List A Types of Options

Definitions:

Aging

The process of becoming older or more mature, often associated with physical, mental, or social changes over time.

Nutritional Value

Refers to the content of essential nutrients and compounds in a food item that contribute to the body's health and wellbeing.

Soda

A sweetened, carbonated beverage, often flavored and containing caffeine.

Obesity

A condition characterized by excessive body fat that increases the risk of health problems.