A6 Modified Opinions Due to Audit Issues

Question 1

Disclaimer Opinion

Answer 1

Audit issues a disclaimer if mgmt refused to furnish written representations.

Question 2

Qualified Opinion

Answer 2

Auditor of a nonissuer should include the reasons for the inability to obtain sufficient appropriate evidence in the Basis for Qualified Opinion Section. It depends on the materiality that determines if to issue a disclaimer of a Qualified Opinion

Question 3

Emphasis of Matter Paragraph

Answer 3

An EOM paragraph is required when the FS are prepared in accordance with a special purpose framework. Required to describe a justified change in accounting principle that is material to the financial statements. Uses the heading “EOM”. Auditors do not add an EOM for lawsuits that are appropriately accounted for under GAAP.