Question 1

An auditor is auditing the financial statements of an issuer. The auditor discovers that the client has not disclosed a significant related party transaction in the footnotes. The transaction is material. Management refuses to correct the omission. Which of the following opinions should the auditor issue?

Accepted Answer

Missing Disclosure = GAAP Departure. GAAP Departure = Qualified or Adverse.

Question 2

What mistakes do candidates make on this CPA question?

Accepted Answer

Thinking missing info is a Scope Limitation. Scope Limitation is when you CAN'T find the info. Here, you found it, but they won't print it.

How to approach this question

Full Answer

Common mistakes

Practice the full CPA AUD Practice Exam 2

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