Group 12: Audit Report

Correct answer A: Evaluate qualitative practices, estimate reasonableness and presentation/disclosure, not arithmetic alone.

SA 700 paragraphs 12-15 require these evaluations alongside evidence and misstatement conclusions.

Correct answer D: A compliance framework, not automatically a fair presentation framework.

SA 700 paragraph 7 distinguishes the framework definitions; reporting wording/evaluation follows the actual applicable framework.

Correct answer B: Do not date the report earlier than the required evidence/readiness conditions.

SA 700 paragraph 48 requires sufficient appropriate evidence including prepared complete statements and authority responsibility acknowledgment.

Correct answer D: Include the required Basis for Opinion section directly following Opinion.

SA 700 paragraph 28 specifies this section and its SA/responsibility/ethics/evidence statements.

Correct answer B: Qualified opinion.

SA 705 paragraph 7(a) governs known material non-pervasive misstatement, not the insufficient-evidence disclaimer branch.

Correct answer C: Adverse opinion.

SA 705 paragraph 8 expressly applies to known material and pervasive misstatement.

Correct answer A: Qualified opinion for possible effects.

SA 705 paragraph 7(b)/17 distinguish possible effects and pervasiveness; inability is not proof of known misstatement.

Correct answer D: Disclaimer of opinion.

SA 705 paragraph 9 specifies this branch; no paragraph 13 management-limitation withdrawal facts are supplied.

Correct answer C: It may be pervasive under professional judgment despite being confined.

SA 705 paragraph 5(a)(ii) expressly includes this definition route without a universal numeric threshold.

Correct answer C: Communicate to governance and determine whether alternative procedures can obtain sufficient evidence.

SA 705 paragraphs 11-13 require removal request, refusal response and alternatives before the supported reporting implications.

Correct answer B: KAM selection follows most-significance judgment from significant-attention matters, not all six automatically.

SA 701 paragraphs 8-11 require the narrowing judgment and whole-audit/no-separate-opinion context.

Correct answer D: Why most significant, how addressed in the audit, and related disclosure reference if any.

SA 701 paragraph 13 defines individual KAM description content; actual work and facts must support it.

Correct answer D: That exception does not apply after entity public disclosure of information about the matter.

SA 701 paragraph 14(b) has this explicit public-disclosure restriction; paragraph 14(a) legal preclusion is a separate branch.

Correct answer D: No; use required modification and the applicable KAM interaction/reference.

SA 701 paragraphs 12/15 prevent the substitute; qualification does not universally prohibit unrelated ordinary KAM communication.

Correct answer A: Do not include the KAM section.

SA 701 paragraph 5/SA 705 paragraph 29 prohibit KAM reporting absent the legal requirement in this branch.

Correct answer A: EOM with clear disclosure reference and no opinion modification for that matter.

SA 706 paragraphs 8-9 set the supplied EOM conditions and content, not an automatic opinion change.

Correct answer B: Other Matter, subject to the applicable conditions.

SA 706 paragraphs 7(b)/10 distinguish outside-statement OM from appropriately disclosed statement EOM.

Correct answer B: EOM is not a substitute for required disclosures or a necessary modified opinion.

SA 706 A 7 expressly preserves these disclosure/opinion boundaries.

Correct answer C: No; appropriate prominence may be given within the KAM section instead.

SA 706 paragraph 8(b)/A 1-A 2 distinguish the interaction and possible KAM prominence.

Correct answer B: The opinion does not refer separately to corresponding figures.

SA 710 paragraph 10 gives the normal treatment with specified exceptions, not a universal separate prior opinion.

Correct answer A: Current modification explains effects/possible effects on comparability under paragraph 11(b).

SA 710 paragraph 11(b) addresses this branch; prior reporting is not a blanket current exemption.

Correct answer C: Sufficient appropriate evidence about opening balances affecting current statements.

SA 710 paragraph 14 expressly retains the evidence requirement; reporting depends on actual findings/evidence.

Correct answer D: Predecessor audit fact, opinion type/modified reasons if applicable, and report date.

SA 710 paragraph 13 is conditional on permission and choice and specifies these facts.

Correct answer B: Each presented period on which an audit opinion is expressed.

SA 710 paragraph 15 distinguishes comparative-statement opinion scope from corresponding-figure treatment.

Correct answer A: Sufficiency of own participation, including materiality, knowledge, risk and additional procedures.

India SA 600 paragraph 9 requires these participation factors; principal/component relationship differs from joint appointment.

Correct answer A: Nature/significance of the subject relative to entity financial information.

India SA 600 paragraph 23 requires entity-level assessment, not mechanical copying.

Correct answer C: Clearly state division of responsibility and extent of included component information.

India SA 600 paragraph 25 specifies division/extent; paragraph 24 has a suspicion exception and does not erase principal procedures.

Correct answer B: Specified shared responsibilities remain despite allocated execution duties.

SA 299 paragraphs 13-14/A 4 distinguish allocated execution from joint/several specified responsibilities.

Correct answer C: Writing to all other joint auditors before audit completion.

SA 299 paragraph 15 specifies recipients, written form and timing; the matter still needs actual evaluation.

Correct answer A: Not majority-bound; separate report treatment with mutual OM references to other reports.

SA 299 paragraph 17/A 5 specify separate disagreement reporting and mutual references; disagreement alone does not choose a type.