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NEW QUESTION: 1
If an independent auditor has not become satisfied by means of other auditing procedures with respect to opening inventories, they should
A. either disclaim an opinion on the statement of income or qualify the opinion thereon, regardless of the degree of materiality of the amounts involved.
B. either disclaim an opinion on the statement of income or qualify the opinion thereon, depending on the degree of materiality of the amounts involved.
C. express an adverse opinion on the statements taken as a whole when the amount in question is material.
D. disclaim an opinion or qualify the opinion on the statements as a whole.
If the auditor has become satisfied as to current inventory, the auditor may use alternative procedures to become satisfied as to opening inventories. But if they cannot become satisfied regarding inventories, a qualified opinion or a disclaimer of opinion may be expressed, depending on materiality. Because cost of goods sold is dependent on opening inventories, an unqualified opinion on the income statement is not possible.
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