CIMA Exam CIMAPRA19-F01-1 Topic 6 Question 72 Discussion

Actual exam question for CIMA's CIMAPRA19-F01-1 exam

Question #: 72
Topic #: 6

The external auditors have completed their audit and have discovered a material but not pervasive error in the financial statements of JK.

The directors of JK have refused to change the financial statements.

What type of modified audit report should be issued?

ADisclaimer of opinion

BEmphasis of matter opinion

CAdverse opinion

DQualified opinion

Show Suggested Answer

Suggested Answer: C

by Tonette at Jul 26, 2023, 12:38 AM

Limited Time Offer

25%

Off

Get Premium CIMAPRA19-F01-1 Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Murray

1 months ago

I bet the directors were hoping the auditors would just 'overlook' that little error. Good luck with that, guys! The answer is D) Qualified opinion, no doubt about it.

upvoted 0 times

Orville

10 days ago

They should definitely issue a Qualified opinion.

upvoted 0 times

...

Dannie

18 days ago

The directors are in trouble for not changing the financial statements.

upvoted 0 times

...

Christoper

2 months ago

This is easy! The answer is clearly C) Adverse opinion. The directors refused to fix the error, so the auditors have no choice but to issue an adverse opinion.

upvoted 0 times

Paulene

7 days ago

C) Adverse opinion

upvoted 0 times

...

Leota

15 days ago

B) Emphasis of matter opinion

upvoted 0 times

...

Billye

1 months ago

A) Adverse opinion

upvoted 0 times

...

Tina

2 months ago

I'm going with B) Emphasis of matter opinion. That way, the auditors can highlight the issue without having to go for a full-blown qualified or adverse opinion.

upvoted 0 times

Buffy

6 days ago

Yeah, it's a good middle ground between a full disclaimer or adverse opinion.

upvoted 0 times

...

Erinn

10 days ago

I agree, it allows the auditors to draw attention to the issue without being too harsh.

upvoted 0 times

...

Curt

27 days ago

I think B) Emphasis of matter opinion is the best choice in this situation.

upvoted 0 times

...

Shala

2 months ago

Hmm, I'm not sure about this one. It's a tricky situation. Maybe C) Adverse opinion would be better since the directors refused to change the statements?

upvoted 0 times

...