Opinion of the Auditor, Systematic Sample Selection, and Audit Test

Discussion Questions
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Q.1
The opinion of the auditor may be qualified by limitations that relate to the scope due to the client's restrictions of conditions that are beyond the control of the client. The case where limitations are due to restrictions by the client occurs where the client, for example, denies the auditor the authority to observe the available inventories physically. On the other hand, qualification limitations due to forces that the client cannot control may be due to lack of an agreement for engagement until the client's financial year ends, and it may be impossible to physically observe the inventories (Georgiades, 2008). A disclaimer of opinion is issued where the limitation's scope is due to restrictions by the client and the auditor should acknowledge that this restriction may be due to deceit by the client. In such a situation, the issued disclaimer is likely to be for the restrictions by the client rather than matters beyond the control of the client. In case the scope is restricted and lead to a failure verifying inventories and not pervasive accounts, a qualified opinion may be issued in this case. The likelihood of this occurring is when the limitation in the auditor's scope is beyond the control of the client and by the client (Georgiades, 2008).
Q.2
In both legal cases and auditing financial statements, a non-partisan individual uses the available evidence to come to conclusions, and the consequences for making the wrong decisions are deleterious in both cases. For example, in a situation where an individual who is deemed guilty is released, the society becomes endangered because of the risk of such an individual to commit a similar crime. This is similar where if investors depend on financial statements that have been misstated, they stand the risk of losing their investments. Moreover, for an individual to be judged as guilty in a legal case, this has to be proven beyond doubt just as competent evidence is required in auditing (Rittenberg, Johnstone, & Gramling, 2009).
However, legal case and audit financial statements differ in the nature of their evidence. While an inquiry can be used as evidence in auditing, physical evidence, third party confirmations, documentation and other reliable types of evidence are required in legal cases. In addition, differences occur in relation to conclusions made where in legal cases a judge or an appointed jury de...