able to examine satisfactory evidence for all other items in the financial statements. The auditor
should issue a(an):

A. "Except for" qualified opinion.
B. Disclaimer of opinion.
C. Unqualified opinion with a separate explanatory paragraph.
D. Unqualified opinion with an Explanation in the scope paragraph.

Answer(s): B
Explanation:
Choice "b" is correct. Restrictions of scope imposed on the audit of such a large (35%) asset
would require a disclaimer of opinion.
Choices "a" and "c" are incorrect. The asset not audited is too large for a qualified opinion and
much too large for an unqualified opinion.
Choice "d" is incorrect. Explanatory language does not get inserted into the scope paragraph,
nor is an unqualified opinion appropriate.
QUESTION: 67
An auditor concludes that there is substantial doubt about an entity's ability to continue as a
going concern for a reasonable period of time. If the entity's disclosures concerning this matter
are adequate, the audit report may include a(an):
A. Option A
B. Option B
C. Option C
D. Option D

Answer(s): D
Explanation:
Choice "d" is correct. Yes - No.
If an auditor concludes that there is substantial doubt about an entity's ability to continue as a
going concern and that the entity's disclosures are adequate, then the audit report may be
either:
-Unqualified with explanatory paragraph, or
-Disclaimed.
(Generally, an unqualified opinion is issued, but the auditor is not prohibited from choosing to
issue a disclaimer.)
Choice "a" is incorrect. An "except for" qualified opinion would be appropriate if the entity's
disclosures were inadequate.
Choice "b" is incorrect. While an unqualified opinion is generally issued, the auditor is not
prohibited from choosing to issue a disclaimer; for example, in areas involving a high degree of
uncertainty.
Choice "c" is incorrect, per Explanation above.

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