[G3]

I have been studying my AUD notes and noticed that there is no mention of the scope paragraph in the Audit Report section of the Notes.

Since the scope is referenced in other parts of the Notes, it should still apply. However, it is not located before the opinion paragraph on any of the report forms (unmodified or modified)

Any clarification on this would be greatly appreciated 🙂

3XBEC:75 * 4XREG:82 * 4XFAR:76 * 7XAUD:77

“It is hard to fail, but it is worse never to have tried to succeed.” Theodore Roosevelt

[jeff]

Good question.

There is no “Scope” paragraph any longer like there was under the extant (AU) standards.

The Auditor's Responsibility paragraph essentially replaces this.

When “Scope” is referenced throughout the notes – it's referring to the scope of the audit, not the old Scope paragraph.

I hope this is helpful,

jeff

AUD - 79
BEC - 80
FAR - 76
REG - 92

Jeff Elliott, CPA (KS)
NINJA CPA | NINJA CMA | NINJA CPE | Another71

[jeff]

Good question.

There is no “Scope” paragraph any longer like there was under the extant (AU) standards.

The Auditor's Responsibility paragraph essentially replaces this.

When “Scope” is referenced throughout the notes – it's referring to the scope of the audit, not the old Scope paragraph.

I hope this is helpful,

jeff

AUD - 79
BEC - 80
FAR - 76
REG - 92

Jeff Elliott, CPA (KS)
NINJA CPA | NINJA CMA | NINJA CPE | Another71

[G3]

Thanks Jeff 🙂

One more question: does the modified opinion replace both the adverse and disclaimer opinion?

According to p. 64

“Material Issues – Modified Opinion…Very Material Issues – Adverse Opinion”

However, according to p. 59 “MODIFIED OPINION (Adverse/Disclaimer)”

Thanks for clearing up the confusion 🙂

3XBEC:75 * 4XREG:82 * 4XFAR:76 * 7XAUD:77

“It is hard to fail, but it is worse never to have tried to succeed.” Theodore Roosevelt

[G3]

Thanks Jeff 🙂

One more question: does the modified opinion replace both the adverse and disclaimer opinion?

According to p. 64

“Material Issues – Modified Opinion…Very Material Issues – Adverse Opinion”

However, according to p. 59 “MODIFIED OPINION (Adverse/Disclaimer)”

Thanks for clearing up the confusion 🙂

3XBEC:75 * 4XREG:82 * 4XFAR:76 * 7XAUD:77

“It is hard to fail, but it is worse never to have tried to succeed.” Theodore Roosevelt

[jlondon]

@G3 No, from what I know.. and correct me if I'm wrong.. Modified opinion just means it has been changed (meaning it is either Qualified or Adverse)… Qualified/Adverse could be for GAAP issues… While Qualified/Disclaimer would be for “scope issues” (GAAS issues)..

And also for modified, I think it means to add some explanation to the emphasis of matter paragraph.

Please add to my answer if anyone has more.. I'm sure there's a bit more to it.. like when to modify, and where to add the paragraphs. This area has always been tested a lot on the exam.

BEC: 69, 57, 72, 73, (anticipated for 4/4/2015)
AUD: 65, 63, 74, 84!!! (expires 7/31/2015)
FAR: 63, 57, (scheduled for 4/1/2015)
REG: ... 42, (Anticipated to be around 5/20~)

-Every Set Back is a Set Up for a Major Come Back #motivation

"I've missed over 9,000 shots in my career. I've lost over 300 games. 26 times I've been trusted to take the game winning shot, and missed. I've failed, over and over and over again in my life. And that is why, I succeed." - Michael Jordan

"You are not your past, but the resources and capabilities you glean from it" -Jordan Belfort

[jlondon]

@G3 No, from what I know.. and correct me if I'm wrong.. Modified opinion just means it has been changed (meaning it is either Qualified or Adverse)… Qualified/Adverse could be for GAAP issues… While Qualified/Disclaimer would be for “scope issues” (GAAS issues)..

And also for modified, I think it means to add some explanation to the emphasis of matter paragraph.

Please add to my answer if anyone has more.. I'm sure there's a bit more to it.. like when to modify, and where to add the paragraphs. This area has always been tested a lot on the exam.

BEC: 69, 57, 72, 73, (anticipated for 4/4/2015)
AUD: 65, 63, 74, 84!!! (expires 7/31/2015)
FAR: 63, 57, (scheduled for 4/1/2015)
REG: ... 42, (Anticipated to be around 5/20~)

-Every Set Back is a Set Up for a Major Come Back #motivation

"I've missed over 9,000 shots in my career. I've lost over 300 games. 26 times I've been trusted to take the game winning shot, and missed. I've failed, over and over and over again in my life. And that is why, I succeed." - Michael Jordan

"You are not your past, but the resources and capabilities you glean from it" -Jordan Belfort

[G3]

I'm not sure if Modified has replaced Adverse/Disclaimer. But I want to be sure before I rewrite my Notes; since the other rules no longer apply, I don't want to screw this up 🙂

3XBEC:75 * 4XREG:82 * 4XFAR:76 * 7XAUD:77

“It is hard to fail, but it is worse never to have tried to succeed.” Theodore Roosevelt

[G3]

I'm not sure if Modified has replaced Adverse/Disclaimer. But I want to be sure before I rewrite my Notes; since the other rules no longer apply, I don't want to screw this up 🙂

3XBEC:75 * 4XREG:82 * 4XFAR:76 * 7XAUD:77

“It is hard to fail, but it is worse never to have tried to succeed.” Theodore Roosevelt

[G3]

I can't find the answer in my other study material 🙁

3XBEC:75 * 4XREG:82 * 4XFAR:76 * 7XAUD:77

“It is hard to fail, but it is worse never to have tried to succeed.” Theodore Roosevelt

[G3]

I can't find the answer in my other study material 🙁

3XBEC:75 * 4XREG:82 * 4XFAR:76 * 7XAUD:77

“It is hard to fail, but it is worse never to have tried to succeed.” Theodore Roosevelt

[Anonymous]

They're just terminology changes.

Unmodified opinion = clean report, formerly known as unqualified.

Modified opinion = qualified, disclaimed, adverse. This was previously known as a qualified report. So no, modified does not replace adverse / disclaimed opinions (they still exist) but is simply an opinion that is not unmodified.

Note also that you can still issue an unmodified report with an emphasis of matter / other matter paragraph; it doesn't change the opinion of the report.

[Anonymous]

They're just terminology changes.

Unmodified opinion = clean report, formerly known as unqualified.

Modified opinion = qualified, disclaimed, adverse. This was previously known as a qualified report. So no, modified does not replace adverse / disclaimed opinions (they still exist) but is simply an opinion that is not unmodified.

Note also that you can still issue an unmodified report with an emphasis of matter / other matter paragraph; it doesn't change the opinion of the report.

[G3]

So, the report format which was separate for qualified, adverse, and disclaimer has all been rolled into an unmodified report format with different opinions (unmodified, adverse, disclaimer) based on materiality?

Is this because the “scope paragraph” was replaced by the “auditor's responsibility paragraph”?

3XBEC:75 * 4XREG:82 * 4XFAR:76 * 7XAUD:77

“It is hard to fail, but it is worse never to have tried to succeed.” Theodore Roosevelt

[G3]

So, the report format which was separate for qualified, adverse, and disclaimer has all been rolled into an unmodified report format with different opinions (unmodified, adverse, disclaimer) based on materiality?

Is this because the “scope paragraph” was replaced by the “auditor's responsibility paragraph”?

3XBEC:75 * 4XREG:82 * 4XFAR:76 * 7XAUD:77

“It is hard to fail, but it is worse never to have tried to succeed.” Theodore Roosevelt

[G3]

Not sure why, but these changes seem to be messing with head 🙁

3XBEC:75 * 4XREG:82 * 4XFAR:76 * 7XAUD:77

“It is hard to fail, but it is worse never to have tried to succeed.” Theodore Roosevelt

[Author]

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