Question 1. Under International Standards on Auditing, when is it appropriate to issue a disclaimer of opinion?

A) When the auditor is unable to obtain sufficient appropriate audit evidence or when the auditor, despite having obtained sufficient appropriate audit evidence, concludes that misstatements, individually or in the aggregate, are both material and pervasive to the financial statements.

B) When the auditor is unable to obtain sufficient appropriate audit evidence or when the auditor is faced with multiple uncertainties and, dispite obtaining sufficient appropriate audit evidence about each individual uncertainty, cannot form an opinion on the financial statements as a whole because of their interaction and their potential cumulative effect or when the auditor, despite having obtained sufficient appropriate audit evidence, concludes that misstatements, individually or in the aggregate, are both material and pervasive to the financial statements.

C) When the auditor is faced with multiple uncertainties and, dispite obtaining sufficient appropriate audit evidence about each individual uncertainty, cannot form an opinion on the financial statements as a whole because of their interaction and their potential cumulative effect or when the auditor, despite having obtained sufficient appropriate audit evidence, concludes that misstatements, individually or in the aggregate, are both material and pervasive to the financial statements.

D) When the auditor is unable to obtain sufficient appropriate audit evidence or when the auditor is faced with multiple uncertainties and, dispite obtaining sufficient appropriate audit evidence about each individual uncertainty, cannot form an opinion on the financial statements as a whole because of their interaction and their potential cumulative effect.

Question 2. In order for a CPA to practice before the IRS, the CPA:

A) Must not be currently under suspension or debarment from practice before the IRS.

B) Must file a declaration with the IRS indicating the CPA is currently qualified as a CPA and authorized to represent the party.

C) Must not be currently under suspension or debarment from practice before the IRS. Must file a declaration with the IRS indicating the CPA is currently qualified as a CPA and authorized to represent the party. Must have five years of tax experience.

D) Must not be currently under suspension or debarment from practice before the IRS. Must file a declaration with the IRS indicating the CPA is currently qualified as a CPA and authorized to represent the party.

Question 3. How can one manipulate a financial statement?

Options:

A)
recognition of revenues
recognition of asset disposals or investment gains as either reductions in operating expenses or increases in operating revenues
recognition of current operating expenses as being applicable to some prior period or being deferred to some future period
failure to recognize or the inappropriate reduction of liabilities in the current year

B)
recognition of asset disposals or investment gains as either reductions in operating expenses or increases in operating revenues
recognition of current operating expenses as being deferred to some future period
failure to recognize or the inappropriate reduction of liabilities in the current year
recognition of current revenues

C)
recognition of revenues earlier than they should be recognized
recognition of questionable revenues
recognition of false revenues
recognition of asset disposals or investment gains as either reductions in operating expenses or increases in operating revenues

D)
recognition of current operating expenses as being applicable to some prior period or being deferred to some future period
failure to recognize or the inappropriate reduction of liabilities in the current year
recognition of current revenues as being deferred to some future period
recognition of current expenses as current operating expenses