Area IV: Reporting

An auditor is auditing the financial statements of a nonissuer. The auditor identifies a material misstatement in the inventory balance. Management refuses to correct the misstatement. The auditor concludes the misstatement is material but NOT pervasive. Which opinion should be issued?

An auditor is engaged to perform a review of a nonissuer's financial statements under SSARS (AR-C 90). Which of the following procedures is REQUIRED?

An accountant is engaged to perform a compilation of a nonissuer's financial statements. The accountant is NOT independent of the entity. Which of the following is correct regarding the accountant's report?

An auditor is reporting on a nonissuer's compliance with a regulatory requirement in connection with a financial statement audit. The auditor has expressed an adverse opinion on the financial statements. Can the auditor issue a report on compliance providing 'negative assurance'?

An auditor is preparing a report on the audit of a nonissuer's financial statements prepared in accordance with the Cash Basis of accounting (a special purpose framework). Which of the following is a required element of the auditor's report?

An auditor is performing a review of interim financial information for an issuer under PCAOB standards. Which of the following procedures is the auditor REQUIRED to perform?

Which of the following statements is CORRECT regarding the auditor's responsibility for 'Other Information' included in the annual report containing the audited financial statements?

An auditor is performing an integrated audit of an issuer. The auditor identifies a material weakness in internal control over financial reporting. The client remediates the weakness 20 days before year-end. The auditor tests the remediated control and finds it effective. What is the appropriate opinion on internal control?

An auditor is preparing a report on a nonissuer's compliance with a contractual agreement related to a bank loan (e.g., debt covenants). The auditor has audited the financial statements and issued an unmodified opinion. Which of the following is a requirement for the compliance report?

An auditor is performing a 'preparation' engagement under SSARS (AR-C 70). Which of the following statements is correct?

An auditor is auditing the financial statements of a nonissuer. The auditor discovers that the client has omitted the Statement of Cash Flows. Management refuses to present it. What is the appropriate opinion?

In an audit of an issuer, which of the following is a 'Critical Audit Matter' (CAM) that must be communicated in the auditor's report?

An auditor is performing a 'Agreed-Upon Procedures' (AUP) engagement. Which of the following is a requirement for the report?

An auditor is performing a 'Single Audit'. The auditor identifies $20,000 of questioned costs in a major program. The total expenditures for that program are $5,000,000. The threshold for reporting questioned costs is $25,000. What is the auditor's reporting responsibility?

An auditor is auditing the financial statements of a nonissuer. The auditor has substantial doubt about the entity's ability to continue as a going concern, but the doubt is NOT alleviated by management's plans. The financial statements adequately disclose the uncertainty. What is the appropriate audit opinion?

An auditor is performing a 'comfort letter' engagement for underwriters. Which of the following is correct regarding the assurance provided?

An auditor is auditing the financial statements of a nonissuer. The auditor decides to issue a qualified opinion due to a material misstatement. Which of the following is the correct placement of the paragraph describing the matter?

REVISED Q66: An auditor is auditing the financial statements of a nonissuer under current AICPA standards (SAS 134). The auditor issues a qualified opinion. Where does the 'Basis for Qualified Opinion' section appear in the report?

An auditor is auditing the financial statements of a nonissuer. The auditor is unable to obtain sufficient appropriate audit evidence regarding a material foreign investment due to government restrictions. The possible effects of undetected misstatements could be material and pervasive. What is the appropriate opinion?

An auditor is performing a review of a nonissuer's financial statements. The auditor becomes aware of a material departure from GAAP. Management refuses to correct it. The auditor decides to modify the report. Which of the following is the correct conclusion to express?

An auditor is performing a 'compilation' of a nonissuer's financial statements that omit substantially all disclosures required by GAAP. The auditor concludes that the omission is NOT intended to mislead users. Which of the following is correct?

An auditor is auditing the financial statements of a nonissuer. The auditor identifies a material related party transaction that was NOT disclosed in the notes. Management agrees it is a related party but refuses to disclose it. What is the appropriate opinion?

In an integrated audit of an issuer, the auditor identifies a material weakness in internal control over financial reporting. The auditor determines that the financial statements are NOT materially misstated. Which of the following reports should the auditor issue?

An auditor is performing a Single Audit under the Uniform Guidance. The auditor identifies a material instance of noncompliance with federal grant requirements. The noncompliance does NOT result in a material misstatement of the financial statements. The auditor should:

An auditor is engaged to perform a review of a nonissuer's financial statements under SSARS. The auditor learns that the client has omitted substantially all disclosures required by GAAP. The auditor concludes that the omission is not intended to mislead users. The auditor should:

An auditor is issuing a report on compliance with contractual agreements in connection with the audit of financial statements. The auditor expressed an adverse opinion on the financial statements. Can the auditor issue a report on compliance providing negative assurance?

In an examination engagement under SSAE (Attestation Standards), the practitioner's report must include:

A CPA is performing an agreed-upon procedures engagement regarding a client's compliance with a specific lease agreement. Which of the following statements should be included in the practitioner's report?

An auditor is performing a review of interim financial information for an issuer. The auditor finds that the interim data does not comply with GAAP. Management refuses to correct it. The auditor should:

An auditor is preparing a report on the financial statements of a nonissuer prepared in accordance with the cash basis of accounting (a special purpose framework). The report should include:

During the audit of a nonissuer, the auditor identifies a material misstatement in the prior year's financial statements that was not discovered during the prior audit. The prior year statements are presented for comparative purposes. The auditor should:

An auditor is performing a compilation engagement for a nonissuer. The client refuses to provide a representation letter. The auditor should:

Which of the following statements is correct regarding the auditor's responsibility for 'other information' included in the annual report containing audited financial statements?

Which of the following is a requirement for an auditor to issue a report on the application of requirements of an applicable financial reporting framework (a 'second opinion' engagement)?

An auditor is preparing an audit report for a nonissuer. The auditor decides to emphasize that the entity is a component of a larger business enterprise. This disclosure should be made in:

Which of the following is a required procedure in a review of a nonissuer's financial statements?

An auditor is preparing a report on a nonissuer's internal control over financial reporting. This engagement is performed under:

An auditor is performing a 'preparation' engagement under SSARS. Which of the following is true?