In an integrated audit of a nonissuer, if an auditor concludes that a material weakness exists as of the date specified in management's assertion, the auditor should take which of the following actions? Show
If an auditor performing an integrated audit identifies one or more material weaknesses in a nonissuer's internal control, the auditor should: If an auditor performing an integrated audit identifies one or more material weaknesses in a nonissuer's internal control, the auditor should: express an adverse opinion on the entity's internal control. A report on an issuer's integrated audit must include each of the following statements, except: the audit was conducted in accordance with AICPA standards. An accountant may accept an engagement to apply agreed-upon procedures to prospective financial statements provided that: use of the report is restricted to the specified users. An examination of prospective financial statements is a professional service that involves: evaluating the preparation of prospective financial statements and the support underlying the assumptions. Accepting an engagement to compile a financial projection most likely would be inappropriate if the projection is to be distributed to: potential stockholders in an offering statement. An accountant who accepts an engagement to compile a financial projection most likely would make the client aware that the: engagement does not include an evaluation of the support for the assumptions underlying the projection. When an accountant examines projected financial statements, the accountant's report should include a separate paragraph that: describes the limitations on the usefulness of the presentation. When an accountant examines a financial forecast that fails to disclose several significant assumptions used to prepare the forecast, the accountant should describe the assumptions in the accountant's report and issue: When a CPA examines a client's projected financial statements, the CPA's report should: state that the CPA performed procedures to evaluate management's assumptions. An accountant's standard report on a compilation of a projection should not include a statement that: the hypothetical assumptions used in the projection are reasonable in the circumstances. When an accountant compiles projected financial statements, the accountant's report should include a separate paragraph that: describes the limitations on the projection's usefulness. Which of the following items should be included in prospective financial statements issued in an attestation engagement performed in accordance with the Statements on Standards for Attestation Engagements (SSAEs)? All significant assumptions used to prepare the financial statements A CPA is engaged to examine an entity's financial forecast. The CPA believes that several significant assumptions do not provide a reasonable basis for the forecast. Under these circumstances, the CPA should issue: An accountant has been engaged to examine pro forma adjustments that show the effects on previously audited historical financial statements due to a proposed disposition of a significant portion of an entity's business. Other than the procedures previously applied to the historical financial statements, the accountant is required to: I. reevaluate the entity's internal control over financial reporting. II.
determine that the computations of the pro forma adjustments are mathematically correct. Which of the following prospective financial statements is appropriate for general use? I. Financial forecast When an accountant compiles projected financial statements, the accountant's report should include a separate paragraph that: describes the limitations on the usefulness of the projection. Which of the following characteristics of prospective financial statements would require the practitioner to include in a report on the prospective financial statements a paragraph that restricts the use and distribution of the report? They are considered a financial projection. A CPA is required to comply with the provisions of the Statements on Standards for Attestation Engagements when engaged to: provide assurance on investment performance statistics prepared by an investment company on established criteria. Which of the following professional services would be considered an attestation engagement? Preparing the income statement and balance sheet for one year in the future based on client expectations and predictions A practitioner may perform an agreed-upon procedures engagement on prospective financial statements provided that which of the following is met? The prospective financial statements include a summary of significant assumptions. A company hired a practitioner to perform an examination of prospective financial statements. The practitioner concluded that the assumptions did not provide a reasonable basis for the prospective financial statements. Which of the following types of opinion should the practitioner issue? In which of the following situations will a practitioner disclaim an opinion on an examination of prospective financial statements? The practitioner was not able to perform certain procedures deemed necessary. In which of the following engagements would a practitioner provide limited assurance about the possible significant effects on the historical financial statements if a change in capitalization had occurred at an earlier date? A review of pro forma financial information Which of the following activities would most likely be considered an attestation engagement? Issuing a report about a firm's compliance with laws and regulations When a practitioner examines projected financial statements The report should include a separate paragraph that?When the prospective financial statements contain a range, the practitioner's standard report should also include a separate paragraph that states that the responsible party has elected to portray the expected results of one or more assumptions as a range.
When an accountant compiles projected financial statements the accountant's report should include?An accountant's compilation report on a financial forecast should include a statement that: There will usually be differences between the forecasted and actual results. Which of the following is a conceptual difference between the attestation standards and generally accepted auditing standards?
What must prospective financial statements contain?A financial forecast consists of prospective financial statements that present an entity's expected financial position, result of operations, and cash flows. A forecast is based on the assumptions reflecting the conditions the responsible party expects will exist and the course of action it expects to take.
Which paragraph of an auditor's report on financial statements should refer to Pfrs?Reference to “Philippine Financial Reporting Standards” (PFRS) means the Philippine Financial Reporting Standards issued by the Financial Reporting Standards Council (FRSC). Audit in Accordance with Philippine Standards on Auditing,” paragraph 13(a).
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When an accountant examines prospective financial statements the accountants report should include a separate paragraph that?
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