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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
6 months ago
I thought a Disclaimer was for when you can't form an opinion at all?
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Paul
7 months ago
Emphasis of matter seems more appropriate here.
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Keith
7 months ago
Wait, are they really refusing to change it? That's bold.
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Gertude
7 months ago
I agree, they can't just ignore the error.
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Carey
7 months ago
Definitely a Qualified opinion!
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Jerlene
7 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
8 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
8 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
8 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
8 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
8 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
8 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
8 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
11 months ago
It's important to be transparent in financial reporting.
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Orville
12 months 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
12 months ago
C) Adverse opinion
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Leota
12 months 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
12 months ago
Yeah, it's a good middle ground between a full disclaimer or adverse opinion.
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Erinn
12 months 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
11 months ago
I think in this case, a qualified opinion would still be more appropriate than an adverse opinion.
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Franklyn
11 months ago
That's a good point, an adverse opinion could also be considered depending on the circumstances.
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Annmarie
11 months 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
11 months ago
I agree, a qualified opinion would be the right choice in this situation.
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Rodolfo
12 months ago
I think we should consider all the factors before deciding on the type of audit report to issue.
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Leatha
12 months 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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