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NEW QUESTION: 1
Morris, CPA, suspects that a pervasive scheme of illegal bribes exists throughout the operations of
Worldwide Import-Export, Inc., a new audit client. Morris notified the audit committee and Worldwide's
legal counsel, but neither could assist Morris in determining whether the amounts involved were material to
the financial statements or whether senior management was involved in the scheme. Under these
circumstances, Morris should:
A. Express an adverse opinion on the financial statements.
B. Express an unqualified opinion with a separate explanatory paragraph.
C. Disclaim an opinion on the financial statements.
D. Issue a special report regarding the illegal bribes.
Answer: C
Explanation:
Explanation/Reference:
Explanation:
Choice "B" is correct. Since the CPA could not determine whether the suspected illegal bribes were
material to the financial statements, or whether senior management was involved in the scheme, Morris
should disclaim an opinion on the financial statements.
Choice "A" is incorrect. An unqualified opinion with a separate explanatory paragraph is not appropriate if
suspected material illegal bribes cannot be disproven.
Choice "C" is incorrect. An adverse opinion is inappropriate since the suspected material illegal bribes
have not been proven, nor has any material effect on the financial statements been determined.
Choice "D" is incorrect. Special reports are not issued regarding illegal bribes.
NEW QUESTION: 2
An internal auditor audited a department store's cash function. Which of the following actions would indicate a lack of due professional care by the auditor?
A. The auditor informed appropriate authorities within the organization about suspected wrongdoing but did not inform external authorities.
B. A flowchart of the entire cash function was developed but only samples of transactions were tested.
C. The audit report included a well-supported recommendation for a reduction in staff even though such a reduction might adversely impact morale.
D. Based on a well-designed system of internal controls over the cash function, the audit report assured senior management that no irregularities existed.
Answer: D
NEW QUESTION: 3
Which database platform should App3 use?
A. an Azure virtual machine that has SQL Server installed
B. Azure Database for PostgreSQL
C. Azure Database for MySQL
D. Azure SQL Database
Answer: C
NEW QUESTION: 4
Which of the following is the MOST important aspect of business ethics?
A. Protecting stakeholders' interests
B. Complying with legal and regulatory requirements
C. Ensuring fair and consistent vendor management practices
D. Providing equal opportunities to employees
Answer: A