specifically mention the auditor's responsibility to express an opinion.
QUESTION: 136
When an independent CPA assists in preparing the financial statements of a publicly held entity,
but has not audited or reviewed them, the CPA should issue a disclaimer of opinion. In such
situations, the CPA has no responsibility to apply any procedures beyond:

A. Ascertaining whether the financial statements are in conformity with generally accepted
accounting principles.
B. Determining whether management has elected to omit substantially all required disclosures.
C. Documenting that the internal control structure is not being relied on.
D. Reading the financial statements for obvious material misstatements.

Answer(s): D
Explanation:
Choice "d" is correct. When an independent CPA assists in preparing the FS of a publicly held
entity, but has not "audited" or "reviewed" them, the CPA should issue a disclaimer of opinion
and has only the responsibility to read the FS for obvious material misstatements. Choice "a" is
incorrect. A disclaimer does not require ascertaining whether the FS are in conformity with
GAAP. Choice "b" is incorrect. A disclaimer does not require ascertaining whether management
has elected to omit substantially all required disclosures. Choice "c" is incorrect. A disclaimer of
opinion does not require ascertaining whether or not the internal control structure is being relied
upon.
QUESTION: 137
An auditor issued an audit report that was dual dated for a subsequent event occurring after the
original date of the auditor's report. The auditor's responsibility for events occurring subsequent
to the original date was:

A. Extended to subsequent events occurring through the date of reissuance of the report.
B. Extended to include all events occurring since the original date of the auditor's report.
C. Limited to the specific event referenced.
D. Limited to include only events occurring up to the date of the last subsequent event
referenced.

Answer(s): C
Explanation:
Choice "c" is correct. When an auditor issues a report that is dual dated for a subsequent event
occurring after the original date of the auditor's report, the auditor's responsibility for events
occurring subsequent to the original date of the auditor's report is limited to the specific event
referenced. Choices "a", "b", and "d" are incorrect. The auditor takes responsibility for only the
specific event noted in the dual dating and for no other event occurring subsequent to the
original date of the auditor's report.
QUESTION: 138
An auditor most likely would issue a disclaimer of opinion because of:

A. Inadequate disclosure of material information.

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