Auditing Questions: risk, disclosure, departure

Please help with these four questions

_____ 22. Which of the following types of matters do not generally require disclosure in the financial statements?

A.      General risk contingencies

B.       Commitments

C.       Loss contingencies

D.      Liabilities to related parties



_____ 23. A refusal by a lawyer to refusal information related to litigation included in the letter of inquiry is likely to result in:

A.      Confirmation of related lawsuits with the claimants.

B.       Qualification of the audit report

C.       An assessment that loss of the litigation is probable

D.      An adverse opinion.



_____ 24. When a client declines to disclose essential information in the financial statements or notes, the CPA should:

A.      Provide the information in the audit report, if practicable, and qualify the opinion because of a limitation on the scope of the audit

B.       Provide the information in the audit report, if practicable and qualify the opinion because of a departure from GAAP.

C.       Issue a disclaimer of opinion because the client has interfered with the auditor's function of assessing the adequacy of disclosure.

D.      Issue and unqualified opinion, but inform the reader by including the omitted information in the audit report



_____ 25. When financial statements are affected by a material departure from generally accepted accounting principles, the auditors should:

A.      Issue and unqualified report with an explanatory paragraph

B.       Withdraw from the engagement

C.       Issue an "Except for" qualification or an adverse opinion.

D.      Issue an "except for" qualification or a disclaimer of opinion.