176) The objective of an accountant's compilation of the financial statements of a nonissuer (nonpublic company) is to provide what type of assurance?
a. Absolute assurance
b. Limited assurance
c. No assurance
d. Reasonable assurance
177) Which of the following statements is a basic element of the auditor's standard report?
a. The disclosures provide reasonable assurance that the financial statements are free of material misstatement.
b. The auditor evaluated the overall internal control.
c. An audit includes assessing significant estimates made by management.
d. The financial statements are consistent with those of the prior period.
178) Which of the following best describes the reference to the expression "taken as a whole" in the fourth generally accepted auditing standard of reporting?
a. It applies equally to a complete set of financial statements and to each individual financial statement.
b. It applies only to a complete set of financial statements.
c. It applies equally to each item in each financial statement.
d. It applies equally to each material item in each financial statement.
179) An auditor may issue the standard audit report when the
a. Auditor refers to the findings of a specialist.
b. Financial statements are derived and condensed from complete audited financial statements that are filed with a regulatory agency.
c. Financial statements are prepared on the cash receipts and disbursements basis of accounting.
d. Principal auditor assumes responsibility for the work of another auditor.
180) Which of the following auditing procedures most likely would assist an auditor in identifying conditions and events that may indicate substantial doubt about an entity's ability to continue as a going concern?
a. Inspecting title documents to verify whether any assets are pledged as collateral.
b. Confirming with third parties the details of arrangements to maintain financial support.
c. Reconciling the cash balance per books with the cutoff bank statement and the bank confirmation.
d. Comparing the entity's depreciation and asset capitalization policies to other entities in the industry.