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

Answer(s): A
Explanation:
Choice "a" is correct. Yes - Yes.
An auditor may issue a qualified opinion (or a disclaimer, depending on materiality) when there
is a lack of sufficient appropriate audit evidence, or when there are restrictions on the scope of
the audit. Choices "b", "c", and "d" are incorrect, as explained above.
QUESTION: 155
Grant Company's financial statements adequately disclose uncertainties that concern future
events, the outcome of which are not susceptible of reasonable estimation. The auditor's report
should include a (an):

A. Unqualified opinion.
B. "Subject to" qualified opinion.
C. "Except for" qualified opinion.
D. Adverse opinion.

Answer(s): A
Explanation:
Choice "a" is correct. The auditor should issue an "unqualified opinion" when management
adequately discloses future events, the outcome of which are not susceptible of reasonable
estimation. No reference to the uncertainty need be made in the auditor's opinion.
Choice "b" is incorrect. "Subject to" qualified opinions are not permitted. Choice "c" is incorrect.
An "except for" qualified opinion would not be used as there is adequate disclosure and there
are no scope limitations.
Choice "d" is incorrect. An adverse opinion would not be used because the FS are presented
"fairly" in conformity with GAAP.
QUESTION: 156
How are management's responsibility and the auditor's responsibility represented in the
standard auditor's report?

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