A restriction on the scope of the auditor's examination requires
A) a qualifying paragraph to be included in the introduction.
B) a qualifying paragraph preceding the opinion paragraph.
C) a disclaimer opinion.
D) a basis for a qualified opinion paragraph.

Question

Quizplus · Accepted Answer

A qualifying paragraph preceding the opinion paragraph is the appropriate way for the auditor to communicate the restriction on the scope of the examination. This paragraph should explain the nature of the restriction and its impact on the auditor's ability to obtain sufficient evidence to support the financial statements. The disclaimer opinion (C) is only necessary if the auditor is unable to obtain sufficient evidence to support the financial statements. The basis for a qualified opinion paragraph (D) is used when the auditor agrees with the financial statements but disagrees with a specific accounting treatment or disclosure. A qualifying paragraph (A) in the introduction would not be specific enough to adequately communicate the restriction on the scope of the examination.

A Restriction on the Scope of the Auditor's Examination Requires