ExpertMedium1 markMultiple Choice
CPA · Question 67 · Area IV: Reporting
REVISED Q66: An auditor is auditing the financial statements of a nonissuer under current AICPA standards (SAS 134). The auditor issues a qualified opinion. Where does the 'Basis for Qualified Opinion' section appear in the report?
REVISED Q66: An auditor is auditing the financial statements of a nonissuer under current AICPA standards (SAS 134). The auditor issues a qualified opinion. Where does the 'Basis for Qualified Opinion' section appear in the report?
Answer options:
A.
Immediately preceding the Opinion section.
B.
Immediately following the Opinion section.
C.
After the Responsibilities of Management section.
D.
In an Emphasis of Matter paragraph.
How to approach this question
Opinion First. Basis Second.
Full Answer
B.Immediately following the Opinion section.✓ Correct
Immediately following the Opinion section.
SAS 134 restructured the nonissuer report to match the international and PCAOB format: Opinion first, then Basis for Opinion.
Common mistakes
Using pre-2021 formats.
Practice the full CPA AUD Practice Exam 4
78 questions · hints · full answers · grading
More questions from this exam
Q01A CPA firm is performing an audit of a nonissuer, TechInnovate Inc. The engagement partner's spou...HardQ02An auditor is performing an audit of an issuer, Global Corp, in accordance with PCAOB standards. ...HardQ03A CPA is performing an audit of a county government entity that receives federal financial assist...HardQ04During the audit of an employee benefit plan subject to ERISA, the auditor discovers that the pla...HardQ05An auditor is evaluating the 'integrity' principle of the AICPA Code of Professional Conduct. Whi...Medium