When can an auditor issue a qualified opinion

Assignment Help Financial Accounting

Reference no: EM131204881

1. When can an auditor issue a qualified opinion when there is a substantial going concern issue?

When the going concern effects will be negative

When the going concern is not disclosed

When management has no plans to delay future expenses

When the losses appear to be irreversible

2. What should the auditor do when faced with a material departure from GAAP on the financial statements?

Issue an adverse opinion

Issue a disclaimer of opinion

Issue an unmodified opinion with a basis for modification paragraph

Withdraw from the engagement

Reference no: EM131204881

Questions Cloud

Difference in operations costing and process costing system : What is the difference between operations costing and a process costing system? How does a company decide whether to use a job order or a process cost system? How does the treatment of costs differ in ABC systems as opposed to traditional cost system..

Statements is omitted from nonpublic company audit reports : What is the auditor's responsibility when there is a substantial going concern issue? Which of the following statements is omitted from nonpublic company audit reports?

Calculate the present value of this cash flow stream : Suppose you are to receive $3,500 2 time(s) per year every year for 29 years (starting one year from now) plus $82,000 in 29 years. If the appropriate discount rate is 13.50%, calculate the present value of this cash flow stream.

Explain why the difference in incomes exist : ABC Company sells 10,000 units of a product at $30 per unit. This is the first year of operations so there is no beginning inventory of finished units. Calculate operating income under absorption costing. Explain why the difference in incomes exist.

When can an auditor issue a qualified opinion : When can an auditor issue a qualified opinion when there is a substantial going concern issue? What should the auditor do when faced with a material departure from GAAP on the financial statements?

Summarize the arguments for advising superfund : You are a partner in the Denver office of a national public accounting firm. During the audit of Mountain Resources, you learn that this audit client is negotiating to sell some of it unproved oil and gas properties to SuperFund, a large investment c..

Capital budgeting computations-discounted cash flow method : In capital budgeting computations, discounted cash flow methods:

Appropriate for the auditors to issue disclaimer of opinion : For which of the following situations would it be appropriate for the auditors to issue a disclaimer of opinion? What type of audit opinion would the auditors issue for a current year immaterial GAAP violation that will become material in the future?..

Placement of a modification paragraph in an audit report : Where is the appropriate placement of a modification paragraph in an audit report? When can an auditor issue a qualified opinion when there is a substantial going concern issue? What should the auditor do when faced with a material departure from GAA..

User Account

All Pages