Choice "c" is correct. Generally accepted auditing standards include three categories: general
standards, standards of fieldwork, and standards of reporting.
Choices "a", "b", and "d" are incorrect, based on the above Explanation.
QUESTION: 13
When qualifying an opinion because of an insufficiency of audit evidence, an auditor should
refer to the
situation in the:
A. Option A
B. Option B
C. Option C
D. Option D

Answer(s): B
Explanation:
Choice "b" is correct. When a qualified opinion is issued due to a lack of sufficient audit
evidence, the lack of evidence should be disclosed in an explanatory paragraph before the
opinion paragraph. Since insufficient evidence is a scope limitation, the scope paragraph should
also be modified to refer to the limitation and to the explanatory paragraph that discusses it.
Choices "a" and "c" are incorrect. Management (and not the auditor) prepares the notes to the
financial statements. The auditor therefore would not refer to this (or any other) situation in the
notes to the financial statements.
Choice "d" is incorrect. The auditor does refer to the situation in the scope paragraph.
QUESTION: 14
When an auditor believes there is substantial doubt about the ability of an entity to continue as a
going concern, all of the following should be included in the audit documentation, except:

A. The conditions that gave rise to the substantial doubt.
B. The auditor's conclusion about whether substantial doubt remains or is alleviated.
C. Management's conclusion regarding whether substantial doubt remains or is alleviated.
D. The effect of the auditor's conclusion on the auditor's report.

Answer(s): C
Explanation:
Choice "c" is correct. Whether substantial doubt remains or is alleviated is a judgment call made
by the auditor, and there is no requirement to document management's opinion on the matter.
Choices "a", "b", and "d" are incorrect. When an auditor believes there is substantial doubt
about the ability of an entity to continue as a going concern, the conditions that gave rise to the
substantial doubt, the auditor's conclusion about whether substantial doubt remains or is
alleviated, and the effect of the auditor's conclusion on the auditor's report should all be

https://Free-Braindumps.com

Free AICPA CPA-Auditing Exam Braindumps (page: 6)

CPA-Auditing Exam Discussions & Posts