When an auditor does not confirm material accounts receivable,but is satisfied by the application of alternative auditing procedures,she normally should: A)Issue an unmodified opinion,but disclose elsewhere in the report this departure from a customary procedure. B)Issue an unmodified opinion with no reference to this omission. C)Issue a qualified opinion or a disclaimer,depending on the materiality of the receivables. D)Issue an adverse opinion.

Question

Quizplus · Accepted Answer

If the auditor is satisfied by the application of alternative auditing procedures, it means that sufficient appropriate evidence has been obtained to support the financial statements. Therefore, an unmodified opinion can be issued with no reference to the omission of the confirmation of accounts receivable. If the auditor is not satisfied by alternative procedures, a qualified opinion or a disclaimer may be necessary. An adverse opinion is only issued when the financial statements are materially misstated.

When an Auditor Does not Confirm Material Accounts Receivable,but Is