Reference no: EM132716714

Problem 1. As used in PSA 560, the term "subsequent events" refers to

a. Events occurring the date of the financial statement.

b. Events occurring after the date of the auditor's report

c. Events occurring between the date of the financial statements and the date of the auditor's report.

d. Both events occurring between the date of the Financial Statements and the date of the auditor's report, and facts discovered after the date of the auditor's report.

Problem 2. Which of the following statements best describes a positive request for confirmation of an Accounts Receivable balance?

a. The customer will be asked to indicate to the auditor the current balance in the account.

b. The customer will be asked to respond to the confirmation request only if the balance indicated in the request is incorrect.

c. The customer will be asked to inform the auditor whether the balance indicated in the request is correct and to respond regardless of whether such stated balance is correct.

d. The customer will be asked to indicate to the auditor the balance in his/her account only if it is positive (i.e., greater than zero).

Problem 3. The auditor is required to obtain reasonable assurance about whether the financial statements are free of materials misstatement, whether due to fraud or error. In all cases when reasonable assurance cannot be obtained, the auditor's report shall contain a/an

a. Unmodified opinion

b. Qualified or adverse opinion

c. Qualified or disclaimer of opinion

d. Disclaimer of opinion