If the auditors obtains sufficient appropriate evidence on the entity's accounts receivable balance by alternative procedures because it is impracticable to confirm accounts receivable, the opinion on the entity's financial statements should be unqualified and would
A)disclose the fact that alternative procedures were used due to client-imposed scope limitation.
B)disclose in the Basis for Opinion section that confirmation of accounts receivable was impracticable.
C)not mention the alternative procedures.
D)include an explanatory paragraph that discloses the performance of alternative procedures.

Question

Quizplus · Accepted Answer

If the auditor obtains sufficient appropriate evidence on the entity's accounts receivable balance by alternative procedures, the opinion on the entity's financial statements should be unqualified and not mention the alternative procedures. The auditor is not required to disclose the use of alternative procedures in the report unless the auditor concludes that disclosure is necessary to ensure that the report is not misleading. Since the opinion is unqualified, there is no need to disclose in the Basis for Opinion section that confirmation of accounts receivable was impracticable or include an explanatory paragraph that discloses the performance of alternative procedures.

If the Auditors Obtains Sufficient Appropriate Evidence on the Entity's