If the auditors obtains sufficient appropriate evidence on the entity's accounts receivable balance by alternative procedures because it is impracticable to confirm accounts receivable, the opinion on the entity's financial statements should be unmodified and would
A)disclose the fact that alternative procedures were used due to client-imposed scope limitation.
B)disclose in the Basis for Opinion Section that confirmation of accounts receivable was impracticable.
C)not mention the alternative procedures.
D)include an other-matter paragraph that discloses the performance of alternative procedures.

Question

Quizplus · Accepted Answer

If the auditor obtains sufficient appropriate evidence on the entity's accounts receivable balance by alternative procedures, they should not mention the alternative procedures in the opinion or in a separate paragraph, unless required by GAAP or auditing standards. The opinion should be unmodified, as the auditor has obtained sufficient evidence to support the financial statements. The use of alternative procedures does not necessarily indicate a scope limitation or a weakness in the entity's internal controls, and therefore does not need to be disclosed in the opinion.

If the Auditors Obtains Sufficient Appropriate Evidence on the Entity's