Bianca Jones was engaged to conduct the audit of Smilicor Company (a toy distributor) three months after its year-end date. Bianca was unable to conduct an audit of opening inventory but was able to satisfy herself with respect to the opening balances. She was also able to conduct audit procedures for other opening balances; for example, by observing fixed assets. What type of audit opinion would Smilicor receive?

Question

Quizplus · Accepted Answer

Since Bianca was able to satisfy herself with respect to the opening balances and was able to conduct audit procedures for other opening balances, she would issue an unqualified audit opinion. The inability to audit opening inventory is not significant enough to cause a disclaimer, adverse, or qualified opinion.

Bianca Jones Was Engaged to Conduct the Audit of Smilicor