• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
OpenTuition | ACCA | CIMA

OpenTuition | ACCA | CIMA

Free ACCA and CIMA on line courses | Free ACCA, CIMA, FIA Notes, Lectures, Tests and Forums

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Forums
  • Search
  • Register
  • Login
  • Latest
  • ACCA
  • Ask ACCA Tutor
  • OBU
  • CIMA
  • Ask CIMA Tutor
  • FIA
  • Buy/Sell
  • Qualified
  • Forum Rules

Preconditions for an audit

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AAA Exams › Preconditions for an audit

  • This topic has 1 reply, 2 voices, and was last updated 8 months ago by Kim Smith.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • May 13, 2020 at 1:35 pm #570703
    toushiga
    • Topics: 423
    • Replies: 172
    • ☆☆☆☆

    Sir,for this technical article: https://www.accaglobal.com/uk/en/student/exam-support-resources/professional-exams-study-resources/p7/technical-articles/acceptance-decisions.html

    under “Preconditions for an audit”
    “In relation to the final bullet point, if management impose a limitation on the scope of the auditor’s work in the terms of a proposed audit engagement, the auditor should decline the audit engagement if the limitation could result in the auditor having to disclaim the opinion on the financial statements. ”

    Disclaimer of opinion is for material and pervasive (could not obtain sufficient and appropriate audit evidence), how about if they impose a limitation will result in qualified opinion, will the auditor decline the audit engagement or only when it will be issued disclaimer of opinion?

    Thank you.

    May 13, 2020 at 4:02 pm #570724
    Kim Smith
    Keymaster
    • Topics: 39
    • Replies: 3627
    • ☆☆☆☆☆

    Auditor’s primary responsibility is to report an opinion but to disclaim an opinion means “we are unable to give an opinion”. So what the precondition is saying is that you should not enter into an audit engagement in the expectation/belief that you cannot given an opinion.

    Management should not impose limitations on the scope of the audit so if any are known from the outset I suggest the auditor should decline the engagement – e.g. if management will not give access to all books and records that would be a pervasive matter.

    Limitations that are not within management’s control will most likely only be discovered during the audit and less likely to be pervasive (i.e. confined to individual classes of transactions or account balances).

  • Author
    Posts
Viewing 2 posts - 1 through 2 (of 2 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

ACCA Exam Results – Comments

ACCA PM December 2020 Exam Results ACCA TX December 2020 Exam Results ACCA AA December 2020 Exam Results ACCA FR December 2020 Exam Results ACCA FM December 2020 Exam Results ACCA SBL December 2020 Exam Results ACCA SBR December 2020 Exam Results ACCA AAA December 2020 Exam Results ACCA AFM December 2020 Exam Results ACCA APM December 2020 Exam Results ACCA ATX December 2020 Exam Results

Donate

If you have benefited from our materials please donate

Donate now

You can also "donate your time" and help out other students on the Students Forums

Specially for OpenTuition students

20% off ACCA Books

Get BPP Discount Code

Latest comments

  • John Moffat on Interest Rate Collars
  • John Moffat on Control Accounts (part c) – ACCA Financial Accounting (FA) lectures
  • John Moffat on Activity Based Costing part 1 – ACCA Performance Management (PM)
  • John Moffat on Control Accounts (part c) – ACCA Financial Accounting (FA) lectures
  • vincentbegin on Interest Rate Collars

Copyright © 2021 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in


We use cookies to show you relevant advertising, find out more: Privacy Policy · Cookie Policy