[Anonymous]

“Red Barron Trucking discloses in the notes to the financial statements certain lease obligations. Sally Smith, CPA, believes that the failure to capitalize these leases is departure from GAAP.

Select appropriate report modification.”

The answer given in the answer key, per Becker, is “Modify the opinion paragraph; Add a Basis for Opinion paragraph preceding the opinion paragraph”

However, the book (on page A1-33) says that Auditor’s responsibility paragraph also should be modified. Why Becker in this question does not choose “Modify the auditor’s responsibility paragraph”? Did becker get it wrong? Any help will be appreciated.

[stoleway]

Can you please provide all the 4 choices that were presented?

Because I'm pretty sure that was the best possible answer among the 4 choices

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

Mass-CPA

[stoleway]

Can you please provide all the 4 choices that were presented?

Because I'm pretty sure that was the best possible answer among the 4 choices

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

Mass-CPA

[Anonymous]

Sure! The whole options are

1. Issue the independent auditors report without modification

2. Modify the introductory para/graph

3. Modify the auditor's responsibility paragraph

4. Omit the auditor's responsibility paragraph

5. Modify the opinion paragraph

6. Add a basis for opinion paragraph preceding the opinion paragraph

7. Add a basis for opinion paragraph following the opinion paragraph

The answer per becker is 5 and 6, but I think 3 is also right, because the auditor's responsibility paragraph should be modified as ” We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our QUALIFIED / ADVERSE audit opinion”. This statement can be found on Page A1-33.

[Anonymous]

Sure! The whole options are

1. Issue the independent auditors report without modification

2. Modify the introductory para/graph

3. Modify the auditor's responsibility paragraph

4. Omit the auditor's responsibility paragraph

5. Modify the opinion paragraph

6. Add a basis for opinion paragraph preceding the opinion paragraph

7. Add a basis for opinion paragraph following the opinion paragraph

The answer per becker is 5 and 6, but I think 3 is also right, because the auditor's responsibility paragraph should be modified as ” We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our QUALIFIED / ADVERSE audit opinion”. This statement can be found on Page A1-33.

[Anonymous]

Can anyone tell me why 3 is not correct? I appreciate all your help.

[Anonymous]

Can anyone tell me why 3 is not correct? I appreciate all your help.

[stoleway]

I don't know if Im missing something here but I believe that the auditors responsibility paragraph should also be modified, for both adverse and qualified

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

Mass-CPA

[stoleway]

I don't know if Im missing something here but I believe that the auditors responsibility paragraph should also be modified, for both adverse and qualified

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

Mass-CPA

[Anonymous]

Yea， I believe so too.

[Anonymous]

Yea， I believe so too.

[Anonymous]

angelajeff11, I am almost 99% certain that Becker issued a corrected answer for this. I remember I had exactly the same question when I was studying for audit. Try “Check for content updates” and follow the prompts, it should bring you to audit sims errata/clarifications.

Auditor's responsibility paragraph should be modified.

[Anonymous]

angelajeff11, I am almost 99% certain that Becker issued a corrected answer for this. I remember I had exactly the same question when I was studying for audit. Try “Check for content updates” and follow the prompts, it should bring you to audit sims errata/clarifications.

Auditor's responsibility paragraph should be modified.

[Anonymous]

Thank you JBYYS!

[Anonymous]

Thank you JBYYS!

[Author]

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