[Anonymous]

Hi all, how do you differentiate Inadequate disclosure vs. Insufficient evidence in AUD exam? I know that Inadequate disclosure is qualified/adverse opinion under GAAP and Insufficient evidence is a scope limitation under GAAS. But I sometimes mix these 2 together while working on multiple choice questions.

Do you have some tips on how to differentiate these 2? Thanks in advance!

[stoleway]

Well, what I can say is that INADEQUATE DISCLOSURE is a departure from GAAP and can call for either qualified or adverse opinion.

INSUFFICIENT EVIDENCE will be a basis for issuing a qualified or Disclaimer.

These are two different issues

REG -63│ 84!!
BEC- 59│70│ 71 │78!
AUD- 75!
FAR- 87!

Mass-CPA

[stoleway]

Well, what I can say is that INADEQUATE DISCLOSURE is a departure from GAAP and can call for either qualified or adverse opinion.

INSUFFICIENT EVIDENCE will be a basis for issuing a qualified or Disclaimer.

These are two different issues

REG -63│ 84!!
BEC- 59│70│ 71 │78!
AUD- 75!
FAR- 87!

Mass-CPA

[taxman89]

one is a departure from GAAP the other is a SCOPE limitation.

insufficient evidence means there are things you cant look at=score limitation

inadequate disclosure means things are presented correctly=gaap departure.

dont know if that helps lol 😀

Aud-75 3x I knew i never liked you
Bec-77 1x being in the bubble is stressful
Reg-82 4x its not me its you...and no we cant be friends
Far-78 1x easiest section

[taxman89]

one is a departure from GAAP the other is a SCOPE limitation.

insufficient evidence means there are things you cant look at=score limitation

inadequate disclosure means things are presented correctly=gaap departure.

dont know if that helps lol 😀

Aud-75 3x I knew i never liked you
Bec-77 1x being in the bubble is stressful
Reg-82 4x its not me its you...and no we cant be friends
Far-78 1x easiest section

[zombiecpa]

DEPQA

departure from GAAP results in qualified or adverse opinion.

FAR 85
AUD 83
BEC 76
REG 90

[zombiecpa]

DEPQA

departure from GAAP results in qualified or adverse opinion.

FAR 85
AUD 83
BEC 76
REG 90

[barelystayingsane]

Insufficient evidence means you can't come to a conclusion. Inadequate disclosure means that you have come to a conclusion but that you don't feel the disclosures properly reflect the company's position. For these questions, ask yourself, “Was the auditor able to come to an opinion/conclusion?”

[barelystayingsane]

Insufficient evidence means you can't come to a conclusion. Inadequate disclosure means that you have come to a conclusion but that you don't feel the disclosures properly reflect the company's position. For these questions, ask yourself, “Was the auditor able to come to an opinion/conclusion?”

[Author]

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