ARA-C01 Practice Questions

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NEW QUESTION: 1
When you develop your audit remediation plan what is the MOST important criteria?
A. To validate that the cost of the remediation is less than the risk of the finding.
B. To validate the remediation process with the auditor.
C. To remediate half of the findings before the next audit.
D. To remediate all of the findings before the next audit.
Answer: A

NEW QUESTION: 2
Which version of Java is WebSphere Commerce v7 based on?
A. Java 1.6
B. WebSphere Commerce is always on the latest version of Java.
C. Java 1.5
D. Java 1.7
Answer: A

NEW QUESTION: 3
This question presents independent factual situations an auditor might encounter in conducting an audit.
List A represents the types of opinions the auditor ordinarily would issue. Select as the best answer for this
item, the action the auditor normally would take. The types of opinions in List A may be selected once,
more than once, or not at all.
Assume:
- The auditor is independent.
- The auditor previously expressed an unqualified opinion on the prior year's financial statements.
- Only single-year (not comparative) statements are presented for the current year.
- The conditions for an unqualified opinion exist unless contradicted in the factual situations.
- The conditions stated in the factual situations are material.
- No report modifications are to be made except in response to the factual situation.
Item to Be Answered
An entity issues financial statements that present financial position and results of operations but omits the
related statement of cash flows. Management discloses in the notes to the financial statements that it does
not believe the statement of cash flows to be a useful financial statement.
List A
Types of Options
A. An adverse opinion.
B. A disclaimer of opinion.
C. Either a disclaimer of opinion or an "except for" qualified opinion.
D. Either an "except for" qualified opinion or an adverse opinion.
E. An unqualified opinion.
F. An "except for" qualified opinion.
G. Either an adverse opinion or a disclaimer of opinion.
Answer: F
Explanation:
Explanation/Reference:
Explanation:
Choice "A" is the correct opinion. Failure to include a statement of cash flows is a GAAP violation that
requires an "except for" qualified opinion to be issued.