If a misstatement is immaterial to the financial statements of the entity for the current period, but is expected to have a material effect in future periods

AUDITING MULTIPLE CHOICE

1. (TCO 2) If a misstatement is immaterial to the financial statements of the entity for the current period, but is expected to have a material effect in future periods, it is appropriate to issue a(n): (Points: 2)

2. (TCO 2) When a client has not applied GAAP consistently from the prior year to the current year, the auditor does not concur with the appropriateness of the change, and the change in GAAP has a material effect on the financial statements, the auditor should issue a(n): (Points: 2)

3. (TCO 2) Which of the following is not an essential condition for issuing the standard unqualified audit opinion? (Points: 2)

4. (TCO 2) An adverse opinion is issued when the auditor believes: (Points: 2)

5. (TCO 11) A principal purpose of a letter of representation from management is to (Points: 2)

6. (TCO 11) A client representation letter is: (Points: 2)

7. (TCO 11) Inquiries of management regarding the possibility of unrecorded contingencies will not be useful in uncovering: (Points: 2)

8. (TCO 11) The audit step most likely to reveal the existence of contingent liabilities is (Points: 2)

9. (TCO 2) The standards which govern the CPA’s association with unaudited financial statements are: (Points: 2)

10. (TCO 2) A CPA firm can issue a compilation report: (Points: 2)

Click here for the solution: If a misstatement is immaterial to the financial statements of the entity for the current period, but is expected to have a material effect in future periods

(Computation of Present Value) Using the appropriate interest table, compute the present values of the following periodic amounts due at the end of the designated periods

ACC 421 Week 5

Exercise 6-5 (E6-5) (Computation of Present Value)
Using the appropriate interest table, compute the present values of the following periodic amounts due at the end of the designated periods.
(a) $30,000 receivable at the end of each period for 8 periods compounded at 12%.
(b) $30,000 payments to be made at the end of each period for 16 periods at 9%.
(c) $30,000 payable at the end of the seventh, eighth, ninth, and tenth periods at 12%.

Click here for the solution: (Computation of Present Value) Using the appropriate interest table, compute the present values of the following periodic amounts due at the end of the designated periods