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Exam CPA Auditing and Attestation topic 1 question 61 discussion

Actual exam question from Test Prep's CPA Auditing and Attestation
Question #: 61
Topic #: 1
[All CPA Auditing and Attestation Questions]

An auditor was unable to obtain sufficient appropriate audit evidence concerning certain transactions due to an inadequacy in the entity's accounting records. The auditor would choose between issuing a(an):

  • A. Qualified opinion and an unqualified opinion with an explanatory paragraph.
  • B. Unqualified opinion with an explanatory paragraph and an adverse opinion.
  • C. Adverse opinion and a disclaimer of opinion.
  • D. Disclaimer of opinion and a qualified opinion.
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Suggested Answer: D 🗳️
Choice "d" is correct. Client-imposed restrictions of scope such as those caused by inadequate records would cause the auditor to choose between issuing a disclaimer of opinion and a qualified opinion.
Choice "a" is incorrect. An unqualified opinion would only be justified if the transactions in question were not material, but in such situations, no explanatory paragraph would be required.
Choices "b" and "c" are incorrect. An adverse opinion pertains to GAAP and would not be used for reporting restrictions of scope.

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