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NEW QUESTION: 1
Due to a scope limitation, an auditor disclaimed an opinion on the financial statements taken as a whole,
but the auditor's report included a statement that the current asset portion of the entity's balance sheet was
fairly stated. The inclusion of this statement is:
A. Not appropriate because it may tend to overshadow the auditor's disclaimer of opinion.
B. Appropriate provided the auditor's scope paragraph adequately describes the scope limitation.
C. Not appropriate because the auditor is prohibited from reporting on only one basic financial statement.
D. Appropriate provided the statement is in a separate paragraph preceding the disclaimer of opinion
Choice "A" is correct. Piecemeal opinions (opinions on parts of the financial statements, when those parts
constitute a major portion of the financial statements) are not appropriate if the auditor has disclaimed an
opinion or issued an adverse opinion, because they may overshadow the auditor's opinion on the financial
statements taken as a whole. An opinion on specified elements that does not constitute a piecemeal
opinion may be expressed, but should not accompany the disclaimer of opinion or the adverse opinion.
Choice "B" is incorrect. The auditor may express an opinion on one financial statement, even if the auditor
must issue a disclaimer on the financial statements taken as a whole.
Choice "C" is incorrect. Even with adequate description in the scope paragraph, an opinion on the current
asset portion of the balance sheet cannot be included in a disclaimer of opinion, as it might overshadow
Choice "D" is incorrect. It is not appropriate to include an opinion on the current asset portion of the
balance sheet in a disclaimer of opinion, as it might overshadow the disclaimer.
NEW QUESTION: 2
A project health check identified a risk that your project would not be completed on time. As a result, you are quantifying the project's risk exposure and determining what cost and schedule contingency reserves might be needed. You performed a schedule risk analysis using Monte Carlo analysis. The basis for your schedule risk analysis is the______________
B. Schedule network diagram and duration estimates
C. Probability/impact risk rating matrix
D. Gantt chart
When determining the likelihood of meeting the project's schedule end date through Monte Carlo, the schedule network diagram and duration estimate are used as inputs to the Simula-tion program. Cost risk, on the other hand, uses cost estimates from the WBS. [Planning] [email protected], [email protected] Guide, 2013, 340