In an engagement to express an opinion on one or more specified elements, accounts, or items of a financial statement, the auditor can generally audit only those specified elements and not the entire set of financial statements. However, the auditor is required to audit the entire set of financial statements if the elements specified include
A. Net Income.
B. Stockholders' Equity.
C. Net Income and Stockholders' Equity.
D. Assets.
Answer: Net Income and Stockholders' Equity.
In which of the following situations would an auditor ordinarily choose between expressing an "except for" qualified opinion and expressing an adverse opinion?
A. The auditor did not observe the entity's physical inventory and is unable to become satisfied as to its balance by other auditing procedures.
B. The financial statements fail to disclose information that is required by generally accepted accounting principles.
C. The auditor is asked to report only on the entity's balance sheet and not on the other basic financial statements.
D. Events disclosed in the financial statements cause the auditor to have substantial doubt about the entity's ability to continue as a going concern.
Answer: The financial statements fail to disclose information that is required by generally accepted accounting principles.
What is one reason hashing algorithms are helpful in encryption?
a. They allow the key to be longer so there are more possibilities for the key
b. They make it so the output of the algorithm can help uniquely identify the input
c. They can be used with any type of input
d. They make it so the input of the algorithm cannot be easily identified from the output
Answer: d. They make it so the input of the algorithm cannot be easily identified from the output
