If the auditors encounter a significant scope limitation in evaluating a public company`s internal control over financial reporting, which of the following types of opinions on the effectiveness of the company`s internal control over financial reporting would be appropriate?
a. qualified opinion or adverse opinion
b. unqualified opinion or adverse
c. unqualified opinion or disclaimer of opinion
d. disclaimer of opinion
Answer: d. disclaimer of opinion
What document is used to determine the actual amount of direct labor to record on a job cost sheet?
A. Time ticket
B. Payroll register
C. Production order
D. Wages payable account
Answer: A
Which of the following statements is not true with respect to the auditor's report on internal control over financial reporting?
a. the report may be presented with the report on the entity's financial statements as a combined report
b. the auditor will issue an adverse opinion if one or more material weaknesses exist
c. the report will be dated as of the date of the financial statements
d. the report will express an opinion on the effectiveness of internal control over financial reporting
Answer: c. the report will be dated as of the date of the financial statements
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