Question: A scope limitation imposed by a client affecting the audit in a material, but not pervasive way, would result in a disclaimer of opinion. True
A scope limitation imposed by a client affecting the audit in a material, but not
pervasive way, would result in a disclaimer of opinion.
True
False
Question point
CPA has been engaged to audit the financial statements of Merchant Ltd a
manufacturer of toys. Several individuals are suing the company because of a toy
that injured children. The company has not disclosed the lawsuit in its financial
statements. What type of audit report should be issued?
Adverse.
A GAAP qualification.
A scope qualification.
Disclaimer or denial
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
