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Hi sir, for december 2010 exam question 5c) , a qualified opinion would be required.
Am i right to say that the Basis of qualified opinion paragraph will require an explanation that management refused to provide a written representation in relation to the warranty provision and hence the auditor is unable to form a opinion on this balance ?
Because the answer key only state that a additional paragraph will be required.
The ACCA answer says:
The audit report will require an additional paragraph before* the opinion which will describe the reason for the modification; namely that management refused to provide a written representation in relation to the warranty provision and hence we are unable to form an opinion on this balance. The opinion paragraph will be amended to state ‘except for’.
*Note that the basis of opinion paragraph now comes AFTER the opinion. This answer was produced in 2010 and not updated since the change in layout of the audit report.
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