When the auditor is unable to obtain sufficient,appropriate evidence concerning the beginning inventory,which is material,the report is modified by adding an explanatory paragraph prior to the opinion paragraph and appropriate modification to the auditor's responsibility paragraph.

Question

Quizplus · Accepted Answer

When the auditor is unable to obtain sufficient, appropriate evidence concerning the beginning inventory, which is material, the auditor's report is typically modified by issuing a qualified opinion or a disclaimer of opinion, depending on the level of the limitation on the scope of the audit. The modification is reflected in the opinion paragraph rather than by adding an explanatory paragraph prior to the opinion paragraph.

When the Auditor Is Unable to Obtain Sufficient,appropriate Evidence Concerning