Because the Auditor Was Engaged to Undertake the Audit After

question 31

Multiple Choice

Because the auditor was engaged to undertake the audit after the year-end and was unable to physically examine inventory, the auditor has not accumulated sufficient appropriate evidence to determine whether the financial report is presented fairly.The auditor must depart from the unmodified audit report because the:

• A) scope of the audit has been restricted by circumstances beyond either the client's or the auditor's control.
• B) auditor has lost independence.
• C) financial report has not been prepared in accordance with accounting standards.
• D) scope of the audit has been limited.