50.1K

Verified Solution

Link Copied!

When an auditor concludes there is substantial doubt about a continuing audit client's ability to continue as a going concern for a reasonable period of time, the auditor's responsibility is to 25 Park, CPA, was engaged to audit the financial statements of Tech Co, a new client, for the year ended December 31,20x1.Park obtained sufficient audit evidence for all of Tech's financial statement items except Tech's opening inventory. Due to inadequate financial records Park could not verify Tech's January 1,20x1, inventory balances. Park's opinion on Tech's 20x1 financia statements most likely will be on the A. Issue a qualified or adverse opinion depending upon materiality, due to the possible effects on the financial statements Consider the adequacy of disclosure about B. the client's possible inability to continueas a going concern. Report to the client's audit committee that management's accounting estimates may need to be adjusted. C. Balance Sheet Income Statement A. Disclaimer B. Unmodified C. Disclaimer D. Unmodified Disclaimer Disclaimer 32, Tech Company has disclosed an uncertainty due to pending litigation. The auditor's decision to issue a qualified opinion rather than an unmodified opinion with an emphasis- of-matter paragraph most likely would be determined by the A. Which of the following procedures is not usully performed by the accountant during a review engagement of a nonpublic entity? Lack of sufficient evidence. Inquiring about actions taken at meetings of the board of directors that may affect the financial statements. A. 8. Inability to estimate the amount of loss C. Entity's lack of experience with such litigation. B. Issuing a report stating that the review was performed in accordance with standards established by the AICPA. Reading the financial statements to consider whether they conform with generally accepted accounting principles Communicating any material weaknesses discovered during the consideration of the internal control structure AuSwER C. 3ti A client has capitalizable leases but refuses to capitalize them in the financial statements Which of the following reporting options does an auditor have if the amounts pervasively distort the financial statements? D. A. Qualified opinion B. Unmodified opinion. C. Disclaimer opinion. D. Adverse opinion

Answer & Explanation Solved by verified expert

See Answer