Unformatted text preview: ights reserved. Maxixishere Pdf Collection Auditing and Attestation 1
Under which of the following circumstances would a disclaimer of opinion not be appropriate?
a. The auditor is unable to determine the amounts associated with an employee fraud scheme.
b. Management does not provide reasonable justification for a change in accounting principles.
c. The client refuses to permit the auditor to confirm certain accounts receivable or apply alternative
procedures to verify their balances.
d. The chief executive officer is unwilling to sign the management representation letter.
Choice "b" is correct. A disclaimer of opinion means that the auditor was unable to obtain sufficient
appropriate audit evidence to provide a reasonable basis for an opinion, thus, NO opinion is expressed.
An unjustified accounting change is a GAAP departure that may result in a qualified or adverse opinion,
not a disclaimer.
Choice "a" is incorrect. Inability to determine amounts associated with an employee fraud scheme is a
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This note was uploaded on 06/14/2013 for the course ACCOUNTING audit cpa taught by Professor Becker during the Fall '12 term at Keller Graduate School of Management.
- Fall '12