Yeah

We did not audit the financial statements of B Company, a consolidated subsidiary, which statements reflect total assets and revenues constituting 20 percent and 22 percent, respectively, of the related consolidated totals.   These statements were audited by other auditors, whose report has been furnished to us, and our opinion, insofar as it relates to the amounts included for B Company, is based solely upon the report of the other auditors.

These sentences
  a. Disclaim an opinion.
  b. Qualify the opinion.
  c. Divide responsibility.
  d. Should not be part of the audit report. (AICPA ADAPTED)

c 2. In which of the following situations would the auditor appropriately issue a standard unqualified report with no explanatory paragraph concerning consistency?
  a. A change in the method of accounting for specific subsidiaries that comprise the group of companies for which consolidated statements are presented.
  b. A change from an accounting principle that is not generally accepted to one that is generally accepted.
  c. A change in the percentage used to calculate the provision for warranty expense.
  d. Correction of a mistake in the application of a generally accepted accounting principle.
(AICPA ADAPTED)

b 3. When financial statements are presented that are not in conformity with generally accepted accounting principles, an auditor may issue a(n)

      Qualified Adverse

      opinion opinion
  a.     Yes No
  b.     Yes Yes
  c. No Yes
  d. No No (AICPA ADAPTED)

a 4. The management of a client company believes that the statement of cash flow is not a useful document and refuses to include one in the annual report to stockholders.   As a result, the auditor's opinion should be
  a. Qualified due to inadequate disclosure.
  b. Qualified due to a scope limitation.
  c. Adverse.
  d. Unqualified. (AICPA ADAPTED)

d 5. An auditor would issue an adverse opinion if
  a. The audit was... [continues]

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