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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 unqualified opinion with a separate explanatory paragraph.
B. Issue a special report regarding the illegal bribes.
C. Express an adverse opinion on the financial statements.
D. Disclaim an opinion on the financial statements.
Answer: D
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
In the DiffServ model, which class represents the highest priority with the highest drop probability?
A. AF11
B. AF43
C. AF13
D. AF41
Answer: B
NEW QUESTION: 3
Refer to the Exhibit.
What type of DAE is in the picture?
A. DAE5S
B. DAE7S
C. DAE3S
D. DAE6S
Answer: A
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