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Week 4 Multiple Choice Questions

1. A CPA found that the company has not capitalized a material amount of leases in the financial statements. When considering the materiality of this departure from GAAP, the CPA would choose between which reporting options?

a. Unqualified opinion or disclaimer of opinion.

b. Unqualified opinion or qualified opinion.

c. Emphasis paragraph with unqualified opinion or an adverse opinion.

d. Qualified opinion or adverse opinion.

1. An auditor determined that the company is suffering financial difficulty and the going concern status is seriously in doubt. Even though the company has placed adequate disclosures in the financial statements, the auditor must choose between which of the following audit report alternatives?

a. Unqualified...