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CIMA Exam CIMAPRA19-F01-1 Topic 6 Question 72 Discussion

Actual exam question for CIMA's CIMAPRA19-F01-1 exam
Question #: 72
Topic #: 6
[All CIMAPRA19-F01-1 Questions]

The external auditors have completed their audit and have discovered a material but not pervasive error in the financial statements of JK.

The directors of JK have refused to change the financial statements.

What type of modified audit report should be issued?

Show Suggested Answer Hide Answer
Suggested Answer: C

by Tonette at Jul 26, 2023, 12:38 AM

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Murray
1 months ago
I bet the directors were hoping the auditors would just 'overlook' that little error. Good luck with that, guys! The answer is D) Qualified opinion, no doubt about it.
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Orville
10 days ago
They should definitely issue a Qualified opinion.
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Dannie
19 days ago
The directors are in trouble for not changing the financial statements.
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Christoper
2 months ago
This is easy! The answer is clearly C) Adverse opinion. The directors refused to fix the error, so the auditors have no choice but to issue an adverse opinion.
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Paulene
7 days ago
C) Adverse opinion
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Leota
15 days ago
B) Emphasis of matter opinion
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Billye
1 months ago
A) Adverse opinion
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Tina
2 months ago
I'm going with B) Emphasis of matter opinion. That way, the auditors can highlight the issue without having to go for a full-blown qualified or adverse opinion.
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Buffy
7 days ago
Yeah, it's a good middle ground between a full disclaimer or adverse opinion.
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Erinn
10 days ago
I agree, it allows the auditors to draw attention to the issue without being too harsh.
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Curt
28 days ago
I think B) Emphasis of matter opinion is the best choice in this situation.
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Shala
2 months ago
Hmm, I'm not sure about this one. It's a tricky situation. Maybe C) Adverse opinion would be better since the directors refused to change the statements?
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Kerrie
2 months ago
I think the correct answer is D) Qualified opinion. Since the error is material but not pervasive, a qualified opinion would be appropriate.
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Bernardo
7 hours ago
I agree, a qualified opinion would be the right choice in this situation.
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Rodolfo
7 days ago
I think we should consider all the factors before deciding on the type of audit report to issue.
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Leatha
8 days ago
I see your point, but I still think a qualified opinion is the best option here.
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Reita
1 months ago
But wouldn't an adverse opinion be more suitable since the directors refused to change the financial statements?
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Herschel
2 months ago
I agree, a qualified opinion seems appropriate in this situation.
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Tandra
2 months ago
But the error is material, so I think an Adverse opinion is more appropriate.
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Corinne
2 months ago
I disagree, I believe the correct answer is D) Qualified opinion.
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Tandra
2 months ago
I think the answer is C) Adverse opinion.
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