[Jasper]

I seem to be encountering situations where the Wiley Test Bank seems to have erroneous answers for the MCQ’s.

For instance, below are two MCQ’s that I think Wiley is wrong.

When a predecessor auditor reissues the report on the prior period’s financial statements at the request of the former client, the predecessor auditor should:

I chose: Obtain an updated management representation letter and compare it to that obtain during the prior period. Wiley marked this wrong.

I am fairly sure that this is one of the documents a predecessor auditor should obtain when reissuing a report on the prior period’s financial statement.

Another Wiley question:

Which of the following types of audit opinion(s) are appropriate when circumstances result in a scope limitation in relation to an audit of a public company’s internal control?

I picked that a qualified opinion is not appropriate and Wiley marked it wrong. I am under the impression that the only opinion that is appropriate is a disclaimer of opinion in this situation.

Maybe I am wrong, but after researching the Wiley AUD practice book, my answers seem right..

FAR 82
BEC 82
AUD 93
REG 87

[barelystayingsane]

It seems that the auditor can issue a qualified opinion based on a scope limitation as long as it's not imposed by management.

From PCAOB AS #2: 178. Scope Limitations. The auditor can express an unqualified opinion on management's assessment of internal control over financial reporting and an unqualified opinion on the effectiveness of internal control over financial reporting only if the auditor has been able to apply all the procedures necessary in the circumstances. If there are restrictions on the scope of the engagement imposed by the circumstances, the auditor should withdraw from the engagement, disclaim an opinion, or express a qualified opinion. The auditor's decision depends on his or her assessment of the importance of the omitted procedure(s) to his or her ability to form an opinion on management's assessment of internal control over financial reporting and an opinion on the effectiveness of the company's internal control over financial reporting. However, when the restrictions are imposed by management, the auditor should withdraw from the engagement or disclaim an opinion on management's assessment of internal control over financial reporting and the effectiveness of internal control over financial reporting.

[Jasper]

@ barelystayingsane,

I think what is mixing me up is Wiley's CPA Exam Review book. The book's content may state one thing, but when I take the Wiley quiz, under the impression such as a disclaimer is the only opinion available on a scope limitation on an internal control audit for a public company (because of the book), I get it wrong.

I dug out an old audit textbook and sure enough, both a qualified and disclaimer can be issued for this situation.

Thanks for your help. Wiley is confusing me because they seem to not have complete information in their Exam Review Book. Wiley is inexpensive, but a little sloppy with study content, in my opinion.

Finally, Wiley told me they are updating their test bank to include the clarity standards for their research questions late next week. A little slow also on this one.

FAR 82
BEC 82
AUD 93
REG 87

[Jasper]

@ barelystayingsane,

I think what is mixing me up is Wiley's CPA Exam Review book. The book's content may state one thing, but when I take the Wiley quiz, under the impression such as a disclaimer is the only opinion available on a scope limitation on an internal control audit for a public company (because of the book), I get it wrong.

I dug out an old audit textbook and sure enough, both a qualified and disclaimer can be issued for this situation.

Thanks for your help. Wiley is confusing me because they seem to not have complete information in their Exam Review Book. Wiley is inexpensive, but a little sloppy with study content, in my opinion.

Finally, Wiley told me they are updating their test bank to include the clarity standards for their research questions late next week. A little slow also on this one.

FAR 82
BEC 82
AUD 93
REG 87

[barelystayingsane]

@Jasper my pleasure! Glad I could help. If it makes you feel better, Becker said the exact same thing about either issuing a disclaimer or withdrawing. Not sure why both books are incorrect. I'm glad you said something or I would have just assumed what was in the book was correct and never would have looked up the standard.

[barelystayingsane]

@Jasper my pleasure! Glad I could help. If it makes you feel better, Becker said the exact same thing about either issuing a disclaimer or withdrawing. Not sure why both books are incorrect. I'm glad you said something or I would have just assumed what was in the book was correct and never would have looked up the standard.

[Anonymous]

All.. also just a note.. Wiley does have typos / errors sometimes… Just email them… I did that for FAR, and they changed their answer for one of the questions that related to consolidations..

[Anonymous]

All.. also just a note.. Wiley does have typos / errors sometimes… Just email them… I did that for FAR, and they changed their answer for one of the questions that related to consolidations..

[Author]

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