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Unformatted text preview: engagement because it would be tantamount to rendering a piecemeal opinion.
c. Accept the engagement because such engagements merely involve limited reporting objectives.
d. Accept the engagement but should disclaim an opinion because of an inability to apply the
procedures considered necessary.
Choice "c" is correct. An auditor may express an opinion on one financial statement, such as a balance
sheet, and not on other related financial statements, provided that the auditor's procedures and access to
all information underlying the basic financial statements have not been restricted. This is simply an
engagement with limited reporting objectives.
Choice "a" is incorrect. Compliance with this request would not violate any ethical standards of the
Choice "b" is incorrect. A "piecemeal" opinion, which is prohibited, is one in which different opinions are
issued on enough different elements in the same financial statement as to constitute a "major portion" of
the financial statements.
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- Fall '12