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NEW QUESTION: 1
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
In auditing the long-term investments account, an auditor is unable to obtain audited financial statements
for an investee located in a foreign country. The auditor concludes that sufficient appropriate audit
evidence regarding this investment cannot be obtained.
List A Types of Options
A. A disclaimer of opinion.
B. Either an adverse opinion or a disclaimer of opinion.
C. An unqualified opinion.
D. An adverse opinion.
E. Either a disclaimer of opinion or an "except for" qualified opinion.
F. An "except for" qualified opinion.
G. Either an "except for" qualified opinion or an adverse opinion.
Answer: E
Explanation:
Explanation/Reference:
Explanation:
Choice "F" is the correct opinion. This is a scope limitation. Either a disclaimer of opinion (if the item is very
material) or an "except for" qualified opinion (if the item is material) should be issued.
NEW QUESTION: 2
A. Option D
B. Option A
C. Option C
D. Option B
Answer: A
Explanation:
Explanation
References:
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Answer: A
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