ACCA AA · Chapter 13 · Question 5 of 12
The auditor is unable to attend the inventory count and cannot obtain sufficient appropriate evidence about inventory by alternative means. Inventory is material but the effect is not pervasive. What opinion should be given?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Qualified opinion
Explanation
An inability to obtain sufficient appropriate evidence, where the possible effects are material but not pervasive, results in a qualified opinion. The auditor states that, except for the possible effects of the matter, the financial statements give a true and fair view. A disclaimer is only used if the possible effects are pervasive.
More Misstatements and the auditor's report MCQs
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- Q8Which of the following best describes when an Emphasis of Matter paragraph is used under ISA 706?
- Q9Under ISA 701, from which matters does the auditor select key audit matters?
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