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7 ACCA Strategic Professional questions with answers and explanations.
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A misstatement is material but not pervasive. The auditor should issue:
Correct answer: A qualified opinion, 'except for'
Qualified opinions are used for material but not pervasive misstatement, or a limit on scope.
A misstatement is material and pervasive. The auditor should issue:
Correct answer: An adverse opinion
A pervasive effect on the financial statements as a whole means that they do not give a true and fair view.
A limit on scope that is material and pervasive leads to:
Correct answer: A disclaimer of opinion
The auditor cannot obtain sufficient appropriate evidence and so cannot form an opinion.
A material uncertainty over going concern is adequately disclosed in the financial statements. The audit report should include:
Correct answer: An unmodified opinion with a separate section on material uncertainty related to going concern
The disclosure is adequate, so the opinion is not modified, but the matter is highlighted.
Key audit matters are communicated in the auditor's report for:
Correct answer: Listed entities
They are matters of most significance in the audit that were communicated to those charged with governance.
An emphasis of matter paragraph is used to:
Correct answer: Draw attention to a matter that is fundamental to users' understanding and is appropriately disclosed
It does not modify the opinion.
Events that occur after the date of the auditor's report but before the financial statements are issued:
Correct answer: Are not the auditor's responsibility to look for, but must be dealt with if the auditor becomes aware
The auditor takes action if a fact becomes known which would have affected the report.