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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
4 days 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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Rodney
6 days 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
8 days 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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Quinn
18 days 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
20 days 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
21 days ago
I think the answer is B.
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Ilda
22 days 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
11 days 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
13 days ago
User 3: Definitely. It's a red flag if management fails to correct a material internal control weakness.
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Lauran
14 days ago
User 2: Agreed. Without strong internal controls, the reliability of financial data is compromised.
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Kaitlyn
15 days 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
30 days 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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Karol
3 days ago
B: Yeah, it's a crucial piece of the puzzle for the auditor.
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Rima
5 days ago
A: I agree, without that letter, it's hard to trust the information.
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