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1. (TCO 2) When determining
whether an exception is highly material the extent to which the exception
affects different elements of the financial statements must be considered. This
concept is called
2. (TCO 2) When a client has not applied GAAP
consistently from the prior year to the current year, the auditor does not
concur with the appropriateness of the change, and the change in GAAP has a
material effect on the financial statements, the auditor should issue a(n)
3. (TCO 2) The only unqualified opinion which contains
modified wording (excluding an explanatory paragraph) relates to
4. (TCO 2) A CPA will issue an adverse auditor's
opinion if
5. (TCO 11) A principal purpose of a letter of
representation from management is to
6. (TCO 11) Refusal by a client to prepare and sign
the representation letter would require a(n)
7. (TCO 11) Inquiries of management regarding the
possibility of unrecorded contingencies will not be useful in uncovering
8. (TCO 11) Which of the following procedures might be
useful in discovering a contingent liability for a lawsuit that management is
intentionally neglecting to disclose?
9. (TCO 2) In which type of report would you read the
following statement: "We believe that our examination provides a
reasonable basis for our opinion."?
10. (TCO 2) Compilation reports may be of all but
which of the following types?
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