[jdiiorio]

Hi everyone,

I am studying for Audit now. I figured I would start this thread for all of us studying audit (and those who already took it and want to help) to share our understanding of certain homework problems. I don’t know about other people without audit experience but sometimes I find it a bit hard to understand why “an auditor would choose to:… ” do something and sometimes Becker explanations do not provide a thorough enough explanation. Anyway, here is my first question:

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?

Thanks in advance!

ILLINOIS CANDIDATE
FAR - Passed
BEC - Passed
AUD - Passed

[Anonymous]

I'm also studying for AUD and my understanding is that the auditor must simply read it and say if it is fair, but under no circumstances does he give an opinion on the information. So even if he can't see it he would not give an opinion, but would give an explanatory paragraph saying that he was not allowed to read the info.

[jdiiorio]

Thanks ct654 – That makes sense.

Also are you using becker?

I have come across as strange message on A2-Topic 4 saying that if I take the exam prior to June2011 not to study the topic. Does that sound familiar to you? Has anyone else gotten this message?

ILLINOIS CANDIDATE
FAR - Passed
BEC - Passed
AUD - Passed

[Anonymous]

wouldn't that still be consider as a qualified opinion due to scope limitation?

[jdiiorio]

That's what I was thinking originally. I was looking at these questions again and reviewing info and Becker said that auditor's have Two objectives when it comes to supplementary information: in relation to F/S taken as a whole they must

a. Evaluate presentation and Report on whether supp. Info is fairly stated …

Doesn't that count as an opinion?

I guess Becker also says that: In the absence of any separate requirement particular to the engagement, the auditor's opinion on the F/S does not cover the Supplementary information.

They also say that an opinion regarding the supplementary information is not required (but is permitted), but that the audit report should include an explanatory paragraph to explain:

a) that required supplementary info is included and auditor applied required procedures

b) supp info was omitted.

c) etc.. (see A1-55)

I am still not sure about this question, maybe its the wording that's getting me. I still think that it should be a scope limitation but I guess based on the info I put above it would be an unqualified opinion w/ and explanatory paragraph

ILLINOIS CANDIDATE
FAR - Passed
BEC - Passed
AUD - Passed

[Author]

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