15,16

Tuqune tle disclaim auditor or to opinion. to express a qualified Which of the following is a limitation on the scope of the an The unavailability of sufficient appropriate evidence. B. The engagement of the auditor to report on only one basic financial statement. C. The audit of a subsidiary's financial statements by an auditor other than the one who audits and reports on the consolidated financial statements. D. The engagement of the auditor after year-end. I 15 ] A limitation on the scope of an audit sufficient to preclude an unmodified opinion is most likely to result when management A. Engages the auditor after the year-end physical inventory count is completed. B. Fails to correct a material internal control weakness that had been identified during the prior year's audit. C. Refuses to furnish a management representation letter to the auditor. D. Prevents the auditor from reviewing the audit documentation of the predecessor auditor [ 16 ] Morris, CPA, suspects that a pervasive scheme of illegal bribes exists throughout the operations of Worldwide Import-Export, Inc., a new audit client. Morris notified the audit committee and Worldwide's legal counsel, but neither would assist Morris in determining whether the amounts involved were material to the financial statements or whether senior management was involved in the scheme. Under these circumstances, Morris most likely should A. Express an unmodified opinion with an other-matter paragraph. B. Disclaim an opinion on the financial statements. C. Express an adverse opinion on the financial statements. D. Issue a special report regarding the illegal bribes. 171 When management will not permit inquiry of outside legal counsel, the audit rep will ordinarily contain a(n) A. Disclaimer of opinion. B. Except for" qualified opinion. C. "Subject to" qualified opinion. D. Unmodified opinion with a separate emphasis-of-matter paragraph