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

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?
C) Adverse opinion
A) Disclaimer of opinion
B) Emphasis of matter opinion
D) Qualified opinion

CIMAPRA19-F01-1 Exam - 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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Herminia
10 months ago
I thought a Disclaimer was for when you can't form an opinion at all?
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Paul
10 months ago
Emphasis of matter seems more appropriate here.
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Keith
10 months ago
Wait, are they really refusing to change it? That's bold.
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Gertude
10 months ago
I agree, they can't just ignore the error.
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Carey
10 months ago
Definitely a Qualified opinion!
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Jerlene
11 months ago
I'm a bit confused; could it be an emphasis of matter opinion? I thought that was for highlighting issues rather than outright errors.
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Mirta
11 months ago
I practiced a similar question, and I feel like a qualified opinion is the right choice here since the error is material but not pervasive.
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Carli
11 months ago
I think if the directors refuse to correct the statements, it could be an adverse opinion, but I need to double-check the definitions.
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Chaya
11 months ago
I remember discussing that if the error is material but not pervasive, it might lead to a qualified opinion, but I'm not entirely sure.
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Alberto
11 months ago
This one seems pretty straightforward. I'm pretty confident the objective that is not part of a Retrospect Sprint Meeting is identifying feature improvements.
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Lacey
11 months ago
Hmm, I'm a bit unsure about the "temporary" and "blacklisted" options. I'll need to review my notes on the different types of IPv6 address assignments supported by DHCPv6.
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Marjory
11 months ago
I'm a bit confused on the difference between a permission set and a public group. I'll need to double-check the details on those.
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Rodrigo
11 months ago
Hmm, this looks like a tricky GRUB menu question. I'll need to think carefully about the capabilities and limitations of GRUB.
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Murray
1 year 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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Ma
1 year ago
It's important to be transparent in financial reporting.
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Orville
1 year ago
They should definitely issue a Qualified opinion.
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Dannie
1 year ago
The directors are in trouble for not changing the financial statements.
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Christoper
1 year 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
1 year ago
C) Adverse opinion
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Leota
1 year ago
B) Emphasis of matter opinion
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Billye
1 year ago
A) Adverse opinion
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Tina
1 year 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
1 year ago
Yeah, it's a good middle ground between a full disclaimer or adverse opinion.
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Erinn
1 year ago
I agree, it allows the auditors to draw attention to the issue without being too harsh.
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Curt
1 year ago
I think B) Emphasis of matter opinion is the best choice in this situation.
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Shala
1 year 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
1 year 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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Anastacia
1 year ago
I think in this case, a qualified opinion would still be more appropriate than an adverse opinion.
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Franklyn
1 year ago
That's a good point, an adverse opinion could also be considered depending on the circumstances.
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Annmarie
1 year ago
But wouldn't an adverse opinion also be a possibility since the directors refused to change the financial statements?
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Bernardo
1 year ago
I agree, a qualified opinion would be the right choice in this situation.
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Rodolfo
1 year ago
I think we should consider all the factors before deciding on the type of audit report to issue.
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Leatha
1 year ago
I see your point, but I still think a qualified opinion is the best option here.
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Reita
1 year ago
But wouldn't an adverse opinion be more suitable since the directors refused to change the financial statements?
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Herschel
1 year ago
I agree, a qualified opinion seems appropriate in this situation.
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Tandra
1 year ago
But the error is material, so I think an Adverse opinion is more appropriate.
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Corinne
1 year ago
I disagree, I believe the correct answer is D) Qualified opinion.
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Tandra
1 year ago
I think the answer is C) Adverse opinion.
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