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AICPA Exam CPA-Auditing Topic 2 Question 103 Discussion

Actual exam question for AICPA's CPA-Auditing exam
Question #: 103
Topic #: 2
[All CPA-Auditing Questions]

A limitation on the scope of an auditor's examination sufficient to preclude an unqualified opinion will always result when management:

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Suggested Answer: C

Choice 'c' is correct. Management's refusal to furnish a written representation letter constitutes a limitation on the scope sufficient to preclude an unqualified opinion.

Choice 'a' is incorrect. Engaging the auditor after the year-end physical count is completed need not preclude an unqualified opinion if the auditor can apply satisfactory alternative audit procedures.

Choice 'b' is incorrect. Failure to correct a material internal accounting control weakness that had been identified during the prior year's audit need not preclude an unqualified opinion, although it may require the auditor to apply extended auditing procedures.

Choice 'd' is incorrect. Inability to review the predecessor's prior year audit documentation may cause the successor auditor more work but need not preclude an unqualified opinion in the current year.


by Edgar at Nov 15, 2024, 11:40 AM

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Niesha
2 months ago
You know, if I was the auditor, I'd be tempted to just show up with a clown costume and red nose. That would be a real limitation on the scope of the examination, am I right?
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Carmela
1 months ago
D) Prevents the auditor from reviewing the audit documentation of the predecessor auditor.
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Roslyn
1 months ago
C) Refuses to furnish a management representation letter to the auditor.
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Danilo
2 months ago
B) Fails to correct a material internal control weakness that had been identified during the prior year's audit.
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Walker
2 months ago
A) Engages the auditor after the year-end physical inventory count is completed.
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Rodney
2 months ago
C all the way, baby! No management letter, no dice. The auditor needs that representation to sign off on the books. This question is a piece of cake!
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Cruz
2 months ago
Hmm, I'm not sure. Maybe D? If the auditor can't review the predecessor's work, that could limit the scope of the audit. But C also makes sense - no management letter, no unqualified opinion.
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Joanna
2 months ago
User 2: Yeah, that makes sense. But C also seems like a valid point - no management letter could definitely impact the opinion.
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Ivory
2 months ago
User 1: I think D is the correct answer. If the auditor can't review the predecessor's work, it could limit the scope of the audit.
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Quinn
3 months ago
I'm not sure, but I think it could also be C. Refusing to furnish a management representation letter could also impact the audit opinion.
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Halina
3 months ago
I agree with Gertude, failing to correct a material internal control weakness can definitely limit the scope of the audit.
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Gertude
3 months ago
I think the answer is B.
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Ilda
3 months ago
I'd go with B. If a material internal control weakness isn't fixed, it casts doubt on the reliability of the financial data. Seems like a no-brainer to me.
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Murray
2 months ago
Lauran: So, it seems like B is the best choice to ensure the auditor can provide an unqualified opinion.
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Billye
3 months ago
User 3: Definitely. It's a red flag if management fails to correct a material internal control weakness.
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Lauran
3 months ago
User 2: Agreed. Without strong internal controls, the reliability of financial data is compromised.
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Kaitlyn
3 months ago
User 1: I think B is the correct answer too. It's important for management to address internal control weaknesses.
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An
3 months ago
Definitely C. Without a management representation letter, the auditor can't rely on the accuracy of the financial statements. That's a deal-breaker for an unqualified opinion.
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Ayesha
2 months ago
C: Absolutely, it's a red flag if management refuses to provide it.
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Karol
2 months ago
B: Yeah, it's a crucial piece of the puzzle for the auditor.
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Rima
2 months ago
A: I agree, without that letter, it's hard to trust the information.
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