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Unformatted text preview: scope limitation would result if the sufficient audit evidence
exists, but is not available to the auditor (possibly due to client imposed restrictions).
Choice "b" is incorrect. A qualified opinion due to a departure from GAAP would be issued if the client did
not disclose the contingent liability in the footnotes to the financial statements.
Choice "c" is incorrect. If a contingent liability is probable, but not estimable, and it is disclosed in the
footnotes, the auditor issues an unqualified audit report without an explanatory paragraph. 2
© 2009 DeVry/Becker Educational Development Corp. All rights reserved. Maxixishere Pdf Collection Auditing and Attestation 1
The introductory paragraph of an auditor's report contains the following sentences:
We did not audit the financial statements of EZ Inc., a wholly-owned subsidiary, which statements reflect
total assets and revenues constituting 27 percent and 29 percent, respectively, of the related
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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