Which of the following statements with respect to the auditor's report providing an opinion on a specific item on a financial report is correct?
A)Such a report can only be provided if the auditor is also engaged to audit the entire financial report.
B)Materiality must be related to the specified item rather than to the financial report taken as a whole.
C)The auditor who has issued an adverse opinion on the financial report taken as a whole can never express an opinion on a specified item in that financial report.
D)The attention devoted to the specific item is usually less than it would be if the financial report taken as a whole were being audited.

Question

Quizplus · Accepted Answer

Materiality must be related to the specified item, not the financial report as a whole, in order for the auditor to provide an opinion on a specific item. The other options are incorrect: A is false because the auditor can provide a report on a specific item even if they are not engaged to audit the entire financial report; C is false because the auditor can provide an opinion on a specified item even if they have issued an adverse opinion on the financial report taken as a whole; and D is false because the attention devoted to the specific item is usually greater than if the auditor were auditing the financial report as a whole.

Which of the Following Statements with Respect to the Auditor's