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Both the old and new statements explain that management will make various representations to the auditor throughout the course of an audit, mainly as a response to specific questions or through the financial statements themselves.

Both also say such management representations, while part of the evidential matter obtained during an audit, are not substitutes for appropriate auditing procedures necessary to afford a reasonable basis for an opinion regarding the financial statements under audit. 85 includes new guidance requiring the auditor to investigate the circumstances and consider the reliability of a representation made if other audit evidence contradicts that representation.

Why does a gallon of milk cost more than twice as much in Helena as it does in Idaho Falls?

An example of a dual opinion requiring the signatures of both auditors Assume that the opinion paragraph of an auditors’ report begins as follows: with the explanation given in mote 6, the financial statements referred to above present fairly… Subject to qualified opinion or an unqualified opinion with a separate explanatory paragraph B. The auditor's considerations relating to management's plans for dealing with the adverse effects of these conditions most likely would include management's plans to: A. Repurchase the entity's stock at a price below its book value. The auditor believes that the new principles are not in conformity with GAAP, and therefore that the 20X4 financial statements are misleading.

Fails to correct a significant deficiency communicated to the audit committee after the prior year's audit In which of the following circumstances would an auditor be most likely to express an adverse opinion: A. Unqualified opinion with a separate explanatory paragraph An explanatory paragraph following the opinion paragraph of an auditor's report describes an uncertainty as follows:“As discussed in Note X to the financial statements the Company is a defendant in a lawsuit alleging infringement of certain patent rights and claiming damages. The ultimate outcome of the litigation cannot presently be determined. An entity changed from the straight-line method to the declining balance method of depreciation for all newly acquired assets. Consistency modification Management believes and the auditor is satisfied that a material loss probably will occur when pending litigation is resolved. The unqualified standard audit report of a nonpublic company does not explicitly state that: A. If principal auditors make no reference to other auditors whose work they have relied on as a part of the basis for their report, the principal auditors: A.

At Albertsons on North Montana Avenue in Helena, a gallon of whole milk cost .59 that day, and at Albertsons in Idaho Falls, Idaho it cost .19.

In Coeur d’Alene, Idaho, a gallon of milk cost .89; in Cheyenne, Wyoming, it was .49.

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