When expressing an opinion on a specified account or item in the financial statements, the auditor need only consider that account or item

When expressing an opinion on a specified account or item in the financial statements, the auditor need only consider that account or item. However, the auditor must have audited the entire set of financial statements if this engagement requires a report on the entity's 

A. Net income.
B. Retained earnings.
C. Assets.
D. Working capital.


Answer: Net income

A scope limitation sufficient to preclude an unqualified opinion always will result when management 

A. Prevents the auditor from reviewing the working papers of the predecessor auditor.
B. Engages the auditor after the year-end physical inventory is completed.
C. Requests that certain material accounts receivable not be confirmed.
D. Refuses to provide a representation letter acknowledging its responsibility for the fair presentation of the financial statements in conformity with GAAP.


Answer: Refuses to provide a representation letter acknowledging its responsibility for the fair presentation of the financial statements in conformity with GAAP.

A special report related to compliance with contractual provisions provides 

A. Positive assurance.
B. Negative assurance.
C. No assurance.
D. None of these.


Answer: Negative assurance.