Sunday, September 11, 2011

Audit Reports, Topic 3: Reports on Audited Financial Statements

A scope limitation sufficient to preclude an unqualified opinion always will result when management:
a.  Prevents the auditor from reviewing the audit documentation of the predecessor auditor.
b.  Engages the auditor after the year-end physical inventory is completed.
c.  Requests that certain material accounts receivable not be confirmed.
d.  Refuses to acknowledge its responsibility for the fair presentation of the financial statements in conformity with GAAP.
Answer:  d

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