[Art Van Delay]

I generally look at audit opinions as:

1. Unmodified – Clean; everything is presented fairly

2. Qualified – Some kind of problem with fair presentation somewhere; “except for”

3. Disclaimer – Severe scope limitation

4. Adverse – Severe issue with fair presentation

I see a lot of questions where they’re asking the appropriate course of action if the F/S or footnotes are not fairly presented and mgmt refuses to adjust. In that case, I would think you could either issue and adverse opinion, or withdraw from the engagement altogether.

Of course, every time that’s asked, adverse opinion and withdrawal are both options.

Are there any rules of thumb with opinions and withdrawing?

[ruggercpa2b]

I think you are confusing things. As you said “if the F/S or footnotes are not fairly presented and mgmt refuses to adjust.”

This would be considered a GAAP departure so you issue a qualified opinion or an adverse opinion.

Withdrawal falls more under management integrity or major scope limitations. If you are taking on a client and they outright refuse to give you supporting evidence then you can withdraw from the engagement because you have nothing to work with.

AUD - 73, 72 retake 7/2/2016
BEC - 8/20/2016
REG - TBD
FAR - TBD

I am so ready for this nightmare to be over. Been at this way too long.

[Author]

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