• 1 Marks

AAA – L3 – SA – Q3.8 – Group Audit Opinion

Opinion when component auditor’s work is unreliable.

If a group auditor decides that the work of a component auditor is unreliable in relation to a material matter, the group audit opinion shall be:

A   Unqualified but with an emphasis of matter paragraph

B   Unqualified with no need for an emphasis of matter paragraph

C   Qualified due to an inability to obtain sufficient appropriate audit evidence

D   Qualified due to material misstatement

C

Explanation:
The auditor has not been able to perform all the procedures deemed necessary in the circumstances. Therefore, there has been an inability to obtain sufficient appropriate audit evidence concerning a material matter, resulting in a qualified opinion. An emphasis of matter (A) or unqualified opinion (B) is inappropriate, and there is no evidence of a material misstatement (D). Thus, C is the correct answer.

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