AICPA CPA-Auditing Exam - Topic 1 Question 22 Discussion

Actual exam question for AICPA's CPA-Auditing exam

Question #: 22
Topic #: 1

A limitation on the scope of an auditor's examination sufficient to preclude an unqualified opinion will always result when management:

AEngages the auditor after the year-end physical inventory count is completed.

BFails to correct a material internal control weakness that had been identified during the prior year's audit.

CRefuses to furnish a management representation letter to the auditor.

DPrevents the auditor from reviewing the audit documentation of the predecessor auditor.

Show Suggested Answer

Suggested Answer: C

Choice 'c' is correct. Management's refusal to furnish a written representation letter constitutes a limitation on the scope sufficient to preclude an unqualified opinion.

Choice 'a' is incorrect. Engaging the auditor after the year-end physical count is completed need not preclude an unqualified opinion if the auditor can apply satisfactory alternative audit procedures.

Choice 'b' is incorrect. Failure to correct a material internal accounting control weakness that had been identified during the prior year's audit need not preclude an unqualified opinion, although it may require the auditor to apply extended auditing procedures.

Choice 'd' is incorrect. Inability to review the predecessor's prior year audit documentation may cause the successor auditor more work but need not preclude an unqualified opinion in the current year.

by Weldon at May 09, 2022, 04:43 AM

Limited Time Offer

25%

5 months ago

Hmm, I'm a bit unsure about this one. The options seem to be contrasting different approaches to the service desk's responsibilities. I'll need to review my notes on service desk best practices.

upvoted 0 times

...