Green,CPA,was engaged to audit the financial statements of Essex Co.after its fiscal year had ended.The timing of Green's appointment as auditor and the start of field work made confirmation of accounts receivable by direct communication with the debtors impracticable.Green applied other procedures and was satisfied as to the reasonableness of the account balances.Green's auditor's report most likely contained a(n)________.
A)unqualified opinion
B)unqualified opinion with an explanatory paragraph
C)qualified opinion due to a scope limitation
D)qualified opinion due to a departure from generally accepted auditing standards

Question

Quizplus · Accepted Answer

Since Green was satisfied as to the reasonableness of the account balances through other procedures, and there is no indication of any material misstatements or departures from generally accepted auditing standards, Green would issue an unqualified opinion. The lack of confirmation is a scope limitation, but it did not affect the overall opinion. Therefore, there is no need for an explanatory paragraph or a qualified opinion.

Green,CPA,was Engaged to Audit the Financial Statements of Essex Co