A. Option A
B. Option B
C. Option C
D. Option D

Answer(s): A
Explanation:
Choice "a" is correct. No - No - Yes.
When a change in accounting principle materially affects the comparability of the comparative
FS, the auditor should refer to the change in an explanatory paragraph fol owing the unqualified
opinion paragraph.
Choices "b" and "c" are incorrect. The auditor's concurrence with a change in GAAP is implicit,
not explicit.
Choice "d" is incorrect. An unqualified opinion should be issued, not an "except for" qualified
opinion.
QUESTION: 65
When a qualified opinion results from a limitation on the scope of the audit, the situation should
be described in an explanatory paragraph:

A. Preceding the opinion paragraph and referred to only in the scope paragraph of the auditor's
report.
B. Fol owing the opinion paragraph and referred to in both the scope and opinion paragraphs of
the auditor's report.
C. Fol owing the opinion paragraph and referred to only in the scope paragraph of the auditor's
report.
D. Preceding the opinion paragraph and referred to in both the scope and opinion paragraphs of
the auditor's report.

Answer(s): D
Explanation:
Choice "d" is correct. When a qualified opinion results from a limitation of scope, it should be
described in an explanatory paragraph preceding the opinion paragraph and referred to in both
the scope and opinion paragraphs of the auditor's report.
Choices "a", "b", and "c" are incorrect, as they do not comply with the rule above.
QUESTION: 66
Restrictions imposed by a client prohibit the observation of physical inventories, which account
for 35% of all assets. Alternative audit procedures cannot be applied, although the auditor was

https://Free-Braindumps.com

Free AICPA CPA-Auditing Exam Braindumps (page: 31)

CPA-Auditing Exam Discussions & Posts