[Anonymous]

CPA-03194: If management (of a governmental body) declines to present supplementary information required by GASB, the auditor should issue an:

a) adverse opinion

b) qualified opinion w/ explanatory paragraph

c) unqualified opinion

d) unqualified opinion w/ explanatory paragraph <— this is the correct answer.

My question: how is this not a qualified opinion due to scope limitation? If the auditor must read the supplementary information and report on whether this information is fairly presented in relation the the F/S taken as a whole, how can he do that if he has no access to the information?

[sbarkerACPA]

From my interpretation of the material (Becker), the opinion from the audit of the financial statements should not be changed (adjusted) because the required supplementary information is not presented. The supplementary information is information that can be presented with the financial statements but not a part of them.

The auditor is not required to audit this information but if entity is required to provide this information the auditor may perform certain limited procedures but if unable they should inform those charged with governance. Also in the explanatory paragraph they will state the required supplementary information was omitted.

pg 52 & 54-55..

I hope that answered your question. I am studying for audit section also and I had to re-read it several times…

BEC: 74;81
AUD: 77
REG: 71; 80
FAR: 78
License for CPA----APPROVED
CPA Class of 2013

[Author]

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