Question 1

An auditor is auditing the financial statements of a nonissuer. The auditor is unable to obtain sufficient appropriate audit evidence regarding a material foreign investment due to government restrictions. The possible effects of undetected misstatements could be material and pervasive. What is the appropriate opinion?

Accepted Answer

Scope Limitation Matrix: Material/Not Pervasive = Qualified. Material/Pervasive = Disclaimer.

Question 2

What mistakes do candidates make on this CPA question?

Accepted Answer

Confusing Adverse (Bad numbers) with Disclaimer (Unknown numbers).

How to approach this question

Full Answer

Common mistakes

Practice the full CPA AUD Practice Exam 4

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