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Exam AUD topic 1 question 63 discussion

Actual exam question from AICPA's AUD
Question #: 63
Topic #: 1
[All AUD Questions]

When a qualified opinion results from a limitation on the scope of the audit, the situation should be described in an explanatory paragraph:

  • A. Preceding the opinion paragraph and referred to only in the scope paragraph of the auditor's report.
  • B. Following the opinion paragraph and referred to in both the scope and opinion paragraphs of the auditor's report.
  • C. Following the opinion paragraph and referred to only in the scope paragraph of the auditor's report.
  • D. Preceding the opinion paragraph and referred to in both the scope and opinion paragraphs of the auditor's report.
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Suggested Answer: D 🗳️
Choice "D" is correct. When a qualified opinion results from a limitation of scope, it should be described in an explanatory paragraph preceding the opinion paragraph and referred to in both the scope and opinion paragraphs of the auditor's report.
Choices "A", "B", and "C" are incorrect, as they do not comply with the rule above.

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