26.  Kregl, CPA, has completed the field work for the current annual audit of Hewett Merchandising Corp.  Kregl obtained sufficient and appropriate audit evidence for all of Hewett’s account balances, transactions and disclosures except for Hewett’s beginning-of-year inventory balance.  Due to inadequate records Kregl could not verify Hewett’s beginning-of-year inventory balance.  Kregl’s opinion on Hewett’s current year financial statements most likely will be:

23.  The auditor did not receive replies to second confirmation requests for the existence of accounts receivable.  Which of the following alternative procedures would the auditor most likely perform to confirm the existence of accounts receivable?

45.  Amanda, a staff auditor with Sharp & Shetty, CPAs, observed the mailing of monthly statements to a client’s customers and reviewed evidence of follow-up on errors reported by the client’s customers.  This test of controls most likely was performed to support management’s assertion of:

44.  Which of the following is the best example of a substantive test?

4.  During Smith & Co.’s audit of Carol Industries, Inc., a non-public company, Smith’s staff examined a sample of Carol’s receiving reports.  This procedure most likely was undertaken to obtain support for entries in the:

44.  Which of the following is the best example of a substantive test?

8.  While observing the physical inventory for finished goods being performed by personnel at the Law Manufacturing Company, the auditor, Crouch, CPA, selected items for test counts and traced these items to Law’s inventory listing.  This procedure most likely obtained evidence concerning which assertion embodied in Law’s financial statements?

37.  Which of the following statements concerning evidential matter is correct?

41.  The accounting firm Adkins & Agee, LLP has completed fieldwork for the audit of Balogh & Company and is now deciding what should be the appropriate form of audit opinion.  The financial statements of Balogh & Company contain a departure from generally accepted accounting principles (GAAP) because, due to unusual circumstances, the statements would otherwise be misleading.  The engagement partner on the audit from Adkins & Agee, LLP agrees that the departure from GAAP is the preferred accounting treatment.  What form of audit opinion should the auditor issue for the current audit of Balogh & Company?

28.  An auditor concludes that a client’s illegal act, which has a material effect on the financial statements, has not been properly accounted for or disclosed.  Depending on the materiality of the effect on the financial statements, the auditor should express either a(n):