Qualified for Scope Limitation

Question 1

Qualified Opinion

Answer 1

expressing that fs are overall fairly states

requires independency
lack of sufficient evidence
scope limitation exists (not pervasive)
unjustified accounting change

Question 2

Scope Limitation

Answer 2

unable to obtain information about a significant subsidiary
unable to obtain audited financial statements of a consolidated investee

results in a basis paragraph+modified paragraph+explanatory paragraph

Question 3

Depending on the severity of the scope limitation an auditor can choose either qualified or disclaim opinoon

Answer 3

true

Question 4

The opinion paragraph of a qualified opinion

Answer 4

should have the word “except”

Question 5

When is a modified opinion expressed?

Answer 5

1) financial statement as a whole is misstated

2) unable to obtain evidence that the fs is free of mm

Question 6

3 types of modified opinions

Answer 6

qualified
adverse
disclaimer

Question 7

2 reasons for a qualified opinion

Answer 7

issue for presentation- f/s are misstated

scope issue-didnt obtain sufficient evidence

Question 8

pervasive

Answer 8

1) effects that are not confined to specific elements, accounts, or items of the f/s
2) effects that if so confined are represent or could represent a substantial proportion of f/s
3) disclosures are fundamental to the understanding of f/s

Question 9

basis for opinion comes before the opinion paragraph and referred to only the opinion paragraph

Answer 9

TRUE