[isaak]

Becker Question –

Which of the following is true?

When an auditor includes a paragraph after the opinion paragraph emphasizing a significant related party transaction, the opinion would be considered a qualified opinion.

b.

The auditor may issue an unmodified opinion when a material departure from GAAP exists.

c.

If an auditor believes there is substantial doubt about an entity’s ability to continue as a going concern, and management has properly disclosed the situation, the auditor may not issue an unmodified opinion.

d.

When a material accounting change has been properly accounted for and disclosed, the auditor may not issue an unmodified opinion.

Why choice c is not correct,since the auditor can disclaim an opinion.

[Gusher_hi]

My understanding is that “may not” can be used to either indicate possibility or a prohibition. I interpreted it as a prohibition the way it was used in the statement under option C. Hence, it is the same as “must not” in this instance.

[thelonewolf527]

“May not” implies “Is not allowed to.” I believe that an unmodified opinion is allowed in this scenario.

B would be correct on the grounds that there can be a GAAP departure as long as it's justified and properly disclosed.

AUD - 08/04/14 - 83
FAR - 11/29/14 - 80
REG - 02/26/15 - 89
BEC - 05/30/15 - 86

DONE!

[Author]

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