Scope Limitation – NBC Institute

AAA – Nov 2013 – L3 – AII – Q15 – Audit Reporting

Determine the audit opinion expressed when there is an extreme scope limitation and insufficient audit evidence.

Question

Opinion expressed when the possible effect of a limitation on scope is an extreme case and the auditor has not been able to obtain sufficient appropriate audit evidence and accordingly is unable to express an opinion on the financial report is………………..opinion.

Answer

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Tags: Audit evidence, Disclaimer of Opinion, Scope Limitation
Level: Level 3

Topic: Audit Reporting
Series: NOV 2013

AAA – Nov 2011 – L3 – SAII – Q19 – Audit Reporting

Effect of scope limitation on the type of auditor’s report.

Question

Limitation in the scope of work may give rise to………… in an auditor’s report.

Answer

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Tags: Audit Reporting, Auditor's Report, Qualified Opinion, Scope Limitation
Level: Level 3

Series: NOV 2011

AAA – May 2024 – L3 – SB – Q3a – Audit Reporting

Discuss forming an appropriate opinion due to scope limitations and evaluate drafted audit report extracts.

Question

You are the Manager-in-charge of the audit of Moonshine Limited. Your auditor’s report for the financial year ended December 31, 2019, was signed without modification in February 2020. The scope of the audit for the year ended December 31, 2020, has been limited because the company’s Chief Executive Officer fled the country in April 2020, taking the accounting records with him.

You have identified a valuable training opportunity for Richard, a member of your audit team. As a training exercise, you have asked Richard to draft the extracts for the basis of opinion and opinion paragraphs that may not be standard wording in an unmodified auditor’s report.

Richard’s draft extracts were produced as follows:

Basis of Opinion (extract)
“However, the evidence available to us was limited because accounting records were missing from early in the year and it was not possible to reconstruct them completely.”
Opinion (extract)
“Because of the possible effect of the limitations in the information available to us, we do not express an opinion on the financial statements.”

Required:

Discuss the principal matters relevant to forming an appropriate opinion on the financial statements of Moonshine for the year ended December 31, 2020. (8 Marks)
Evaluate the suitability of Richard’s draft extracts. (2 Marks)

Answer

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Tags: Audit opinion, Auditor's Report, Basis of Opinion, Evidence Limitation, Scope Limitation
Level: Level 3

Topic: Audit Reporting
Series: MAY 2024

AA – Nov 2023 – L2 – Q4c – Completion Procedures and Reporting, Audit and Assurance Evidence

This question explains the auditor's actions if management refuses to provide representations.

Question

ISA 580: Written Representations guides the use of management representations as audit evidence, the procedures to be applied in evaluating and documenting management representations, and the action to be taken if management refuses to provide appropriate representations.

Required:
Explain the action to be taken by the auditor if management refuses to provide representations.
(3 marks)

Answer

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Tags: ISA 580, Qualified Opinion, Scope Limitation, Written representations
Level: Level 2

Topic: Audit and Assurance Evidence, Completion Procedures and Reporting
Series: NOV 2023

AA – April 2022 – L2 – Q5b – Completion Procedures and Reporting

Comments on the appropriateness of issuing an adverse opinion and suggests an alternative opinion under ISA 705 for a company facing a data loss due to hacking.

Question

b) The Auditor of Pegasus Technologies, a fintech company, issued an adverse opinion on the financial statements for the year ended 31 December 2020. This was due to the fact that management could not make available the sales ledger, cash book, and other ledgers to the auditors due to a massive hack suffered by the company. Hackers used SIM cards to gain access to the company’s mobile money platform, stole funds, and destroyed company records. The hackers have been caught, and the IT unit has fixed the loophole that led to the hacking.

Required:
Comment on the Auditor’s issue of an adverse opinion and suggest whether another opinion would be more appropriate under ISA 705 (revised): Modifications to the Opinion in the Independent Auditor’s Report. (10 marks)

Answer

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Tags: Adverse Opinion, Audit Reporting, Disclaimer of Opinion, ISA 705, Scope Limitation
Level: Level 2

Topic: Completion Procedures and Reporting
Series: APR 2022

AAA – Nov 2013 – L3 – AII – Q15 – Audit Reporting

Determine the audit opinion expressed when there is an extreme scope limitation and insufficient audit evidence.

Question

Answer

Find Related Questions by Tags, levels, etc.

Tags: Audit evidence, Disclaimer of Opinion, Scope Limitation
Level: Level 3

Topic: Audit Reporting
Series: NOV 2013

AAA – Nov 2011 – L3 – SAII – Q19 – Audit Reporting

Effect of scope limitation on the type of auditor’s report.

Question

Limitation in the scope of work may give rise to………… in an auditor’s report.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Audit Reporting, Auditor's Report, Qualified Opinion, Scope Limitation
Level: Level 3

Series: NOV 2011

AAA – May 2024 – L3 – SB – Q3a – Audit Reporting

Discuss forming an appropriate opinion due to scope limitations and evaluate drafted audit report extracts.

Question

Richard’s draft extracts were produced as follows:

Basis of Opinion (extract)
“However, the evidence available to us was limited because accounting records were missing from early in the year and it was not possible to reconstruct them completely.”
Opinion (extract)
“Because of the possible effect of the limitations in the information available to us, we do not express an opinion on the financial statements.”

Required:

Discuss the principal matters relevant to forming an appropriate opinion on the financial statements of Moonshine for the year ended December 31, 2020. (8 Marks)
Evaluate the suitability of Richard’s draft extracts. (2 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Audit opinion, Auditor's Report, Basis of Opinion, Evidence Limitation, Scope Limitation
Level: Level 3

Topic: Audit Reporting
Series: MAY 2024

AA – Nov 2023 – L2 – Q4c – Completion Procedures and Reporting, Audit and Assurance Evidence

This question explains the auditor's actions if management refuses to provide representations.

Question

Required:
Explain the action to be taken by the auditor if management refuses to provide representations.
(3 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: ISA 580, Qualified Opinion, Scope Limitation, Written representations
Level: Level 2

Topic: Audit and Assurance Evidence, Completion Procedures and Reporting
Series: NOV 2023

AA – April 2022 – L2 – Q5b – Completion Procedures and Reporting

Comments on the appropriateness of issuing an adverse opinion and suggests an alternative opinion under ISA 705 for a company facing a data loss due to hacking.

Question

Answer

Find Related Questions by Tags, levels, etc.

Tags: Adverse Opinion, Audit Reporting, Disclaimer of Opinion, ISA 705, Scope Limitation
Level: Level 2

Topic: Completion Procedures and Reporting
Series: APR 2022

Question Tag: Scope Limitation

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AAA – Nov 2013 – L3 – AII – Q15 – Audit Reporting

Determine the audit opinion expressed when there is an extreme scope limitation and insufficient audit evidence.

AAA – Nov 2011 – L3 – SAII – Q19 – Audit Reporting

Effect of scope limitation on the type of auditor’s report.

AAA – May 2024 – L3 – SB – Q3a – Audit Reporting

Discuss forming an appropriate opinion due to scope limitations and evaluate drafted audit report extracts.

AA – Nov 2023 – L2 – Q4c – Completion Procedures and Reporting, Audit and Assurance Evidence

This question explains the auditor's actions if management refuses to provide representations.

AA – April 2022 – L2 – Q5b – Completion Procedures and Reporting

Comments on the appropriateness of issuing an adverse opinion and suggests an alternative opinion under ISA 705 for a company facing a data loss due to hacking.

AAA – Nov 2013 – L3 – AII – Q15 – Audit Reporting

Determine the audit opinion expressed when there is an extreme scope limitation and insufficient audit evidence.

AAA – Nov 2011 – L3 – SAII – Q19 – Audit Reporting

Effect of scope limitation on the type of auditor’s report.

AAA – May 2024 – L3 – SB – Q3a – Audit Reporting

Discuss forming an appropriate opinion due to scope limitations and evaluate drafted audit report extracts.

AA – Nov 2023 – L2 – Q4c – Completion Procedures and Reporting, Audit and Assurance Evidence

This question explains the auditor's actions if management refuses to provide representations.

AA – April 2022 – L2 – Q5b – Completion Procedures and Reporting

Comments on the appropriateness of issuing an adverse opinion and suggests an alternative opinion under ISA 705 for a company facing a data loss due to hacking.

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AAA – Nov 2013 – L3 – AII – Q15 – Audit Reporting

Determine the audit opinion expressed when there is an extreme scope limitation and insufficient audit evidence.

You're reporting an error for "AAA – Nov 2013 – L3 – AII – Q15 – Audit Reporting"

AAA – Nov 2011 – L3 – SAII – Q19 – Audit Reporting

Effect of scope limitation on the type of auditor’s report.

You're reporting an error for "AAA – Nov 2011 – L3 – SAII – Q19 – Audit Reporting"

AAA – May 2024 – L3 – SB – Q3a – Audit Reporting

Discuss forming an appropriate opinion due to scope limitations and evaluate drafted audit report extracts.

You're reporting an error for "AAA – May 2024 – L3 – SB – Q3a – Audit Reporting"

AA – Nov 2023 – L2 – Q4c – Completion Procedures and Reporting, Audit and Assurance Evidence

This question explains the auditor's actions if management refuses to provide representations.

You're reporting an error for "AA – Nov 2023 – L2 – Q4c – Completion Procedures and Reporting, Audit and Assurance Evidence"

AA – April 2022 – L2 – Q5b – Completion Procedures and Reporting

Comments on the appropriateness of issuing an adverse opinion and suggests an alternative opinion under ISA 705 for a company facing a data loss due to hacking.

You're reporting an error for "AA – April 2022 – L2 – Q5b – Completion Procedures and Reporting"

AAA – Nov 2013 – L3 – AII – Q15 – Audit Reporting

Determine the audit opinion expressed when there is an extreme scope limitation and insufficient audit evidence.

You're reporting an error for "AAA – Nov 2013 – L3 – AII – Q15 – Audit Reporting"

AAA – Nov 2011 – L3 – SAII – Q19 – Audit Reporting

Effect of scope limitation on the type of auditor’s report.

You're reporting an error for "AAA – Nov 2011 – L3 – SAII – Q19 – Audit Reporting"

AAA – May 2024 – L3 – SB – Q3a – Audit Reporting

Discuss forming an appropriate opinion due to scope limitations and evaluate drafted audit report extracts.

You're reporting an error for "AAA – May 2024 – L3 – SB – Q3a – Audit Reporting"

AA – Nov 2023 – L2 – Q4c – Completion Procedures and Reporting, Audit and Assurance Evidence

This question explains the auditor's actions if management refuses to provide representations.

You're reporting an error for "AA – Nov 2023 – L2 – Q4c – Completion Procedures and Reporting, Audit and Assurance Evidence"

AA – April 2022 – L2 – Q5b – Completion Procedures and Reporting

Comments on the appropriateness of issuing an adverse opinion and suggests an alternative opinion under ISA 705 for a company facing a data loss due to hacking.

You're reporting an error for "AA – April 2022 – L2 – Q5b – Completion Procedures and Reporting"

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