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NEW QUESTION: 1
When an auditor expresses an adverse opinion, the opinion paragraph should include:
A. A description of the uncertainty or scope limitation that prevents an unqualified opinion.
B. The principal effects of the departure from generally accepted accounting principles.
C. A direct reference to a separate paragraph disclosing the basis for the opinion.
D. The substantive reasons for the financial statements being misleading.
Answer: C
Explanation:
Explanation/Reference:
Explanation:
Choice "B" is correct. The opinion paragraph in an adverse opinion reads, "in our opinion, because of the
effects of the matters discussed in the preceding paragraphs, the financial statements...."
Choice "A" is incorrect. The principal effects of the departure from GAAP are included in the explanatory
paragraph, not the opinion paragraph.
Choice "C" is incorrect. The "substantive reasons for the financial statements being misleading" are
discussed in the explanatory paragraph, not the opinion paragraph.
Choice "D" is incorrect. Scope limitations pertain to disclaimers of opinion, not adverse opinions. (It is very
important to memorize the qualifying phrases in the qualified, adverse, and disclaimer of opinions.)
NEW QUESTION: 2
A. Option A
B. Option E
C. Option C
D. Option B
E. Option D
Answer: B,E
NEW QUESTION: 3
Which two LSA types are permitted in an OSPF stub area? (Choose two.)
A. Type 5
B. Type 2
C. Type 1
D. Type 4
Answer: B,C
Explanation:
Stub areas can contain type 1, 2, and 3 LSAs. A default route is substituted for external routes.
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