On page A1-51, under “Part A: Audited Financial Statements Require Revision”- the text states that the auditor should modify the audit opinion when the financial statements require revision for a material inconsistency.

And under “Part B: Other Information Requires Revision”- the text states that if the other information requires revision for a material inconsistency and management refuses to make the revision, the auditor should communicate this matter with those charged with governance and:

1.     Revise the audit report to include a description of the material inconsistency. OR

2.     Withhold the use of the report. OR

3.     Withdraw from the engagement and consult with legal counsel.

Question:

Part A: What does it mean by that the “auditor should modify the audit opinion”- does it mean issuing a unqualified opinion with an explanatory paragraph or does it mean issuing qualified or adverse opinion with an explanatory paragraph?

Part B: Also, under part B, what does it mean by “revise the audit report to include a description of the material inconsistency? - Does it mean issuing a unqualified opinion with an explanatory paragraph or does it mean issuing qualified or adverse opinion with an explanatory paragraph?

Any help will be appreciated,

Thanks and Regards,

EXAM IN THE EVENING

Thanks Chatterr...I really really appreciate your help...Thanks again for clarifing my last minute doubt.

I chicken out from my AUDIT exam. I had been studying very very hard for this exam, since 1^st march after I gave it in FEB. but the thought of failing it mails me miserable and shaky and very sad. The very last moment my gut said to me that’s its better you study some more, I usually don’t do such a thing but I had to believe in myself this time. I have my 18 months window expiring on 30 NOV. 2011 and I want this one out of the way so that I can fully concentrate on REG from June and make sure I pass it in oct./nov. window. Audit has been very very hard for me, I don’t know how people say that’s its easier…even easier than BEC. My personnel experience till now…AUD has been a total nightmare for me. I am studying day and night, reviewing day and night till it’s not rhyming. With BEC and FAR after a point of study, all the material became easy to incorporate and remember…I just hope that REG is not like this one other wise my life will be a living hell.

I plan to reapply my NTS for AUD and give this exam in the end of may just crossing my fingers to hopefully get the desired date.

I will share with all you guys my exam experience…but I plan to sit for it during the end of MAY window.

Thanks Chatterr for your help in making me understand my last minute doubt. I really appreciate your help.

BEST OF LUCK TO ALL, MAY ALL CLEAR THIS EXAM DURING THIS WINDOW.