Auditing and Attestation- Certified Public Accountant (CPA) Practice Exam -

If the wording of an independent auditor's report is inconsistent with their responsibility, what is the auditor's likely action?

1. Withdraw from the engagement.

2. Reword the form or attach a separate report.

3. Express a qualified opinion with an explanation.

4. Restrict use of the report to the party who designed the form.

The correct answer is: Reword the form or attach a separate report.

In situations where the wording of an independent auditor's report does not align with their overall responsibility, the appropriate response for the auditor is to reword the report or attach a separate report. This action ensures that the report accurately reflects the auditor's findings and responsibilities while maintaining clarity for users of the report. To maintain the integrity and reliability of the audit opinion, auditors must provide a report that accurately communicates their role and the nature of their work. If the original wording misrepresents the auditor's responsibilities or the scope of the audit, simply issuing the report as it stands could mislead users, potentially leading to misunderstandings about the auditor's level of assurance and the extent of the audit performed. Therefore, by rewording the report or attaching a separate document that clarifies their responsibilities and the context of the report, the auditor can ensure that the users of the audit report have the correct understanding of what the report conveys. This approach preserves the credibility of the audit process and aligns with the professional standards expected in auditing. Other potential responses, such as withdrawing from the engagement or expressing a qualified opinion, may be appropriate in different contexts, but rewording offers a direct solution to the issue at hand without severing the auditing relationship or conveying unnecessary limitations on