AUD-Lesson 6-Extra Report Review

Question 1

What is the opinion issued for disagreements about improper use of GAAP (or AFRF), inconsistent use of GAAP principles, or inadequate disclosures?

Answer 1

If immaterial, issue unmodified opinion.
If material, but not pervasive, issue a modified opinion with an ‘Except For’ Explanation.
If very material and pervasive, issue a modified opinion that is adverse

Question 2

What is the opinion issued for cases where there is a scope limit? (Restriction on ability to obtain sufficient appropriate audit evidence)?

Answer 2

If immaterial, issue unmodified opinion.
If material, but not pervasive, issue a modified opinion with an ‘Except For’ Explanation.
If very material and pervasive, issue a modified opinion that is a disclaimer of opinion

Question 3

What is the opinion issued when there is an emphasis of a matter or other matter (uncertainty) Ex: Going Concern Doubt?

Answer 3

If immaterial, issue unmodified opinion.

If material or very material and pervasive, issue unmodified with emphasis-of-matter / Other-Matter paragraph

Question 4

What are the five types of opinions that can be issued?

Answer 4

Unmodified
Unmodified with Emphasis-Of-Matter / Other-Matter
Modified Opinion, Expect For
Modified Opinion, Adverse
Modified Opinion, Disclaimer

Question 5

When does the ‘Other Matter’ paragraph show up in the report?

Answer 5

After the Emphasis of a Matter paragraph

Question 6

What does the Emphasis of a Matter paragraph show up in the report?

Answer 6

After the opinion paragraph

Question 7

When there is restricted use, where does this emphasis appear in the report?

Answer 7

After the Other Matter Paragraph

Question 8

What is the alternate name for Qualified Opinions?

Answer 8

‘Except For Opininions’