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When might an auditor modify the introductory paragraph and replace the scope paragraph with explanatory paragraph?

a. When a scope limitation exists.
b. When there is substantial doubt about going-concern.
c. When the auditor lacks independence.
d. When there is an emphasis of a matter.

1 Answer

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Final answer:

An auditor might modify the introductory paragraph and replace the scope paragraph with an explanatory paragraph in situations such as scope limitations or the emphasis of a matter.

Step-by-step explanation:

An auditor might modify the introductory paragraph and replace the scope paragraph with an explanatory paragraph in different situations. One scenario is when there is a scope limitation. This means that the auditor was unable to obtain sufficient evidence to form an opinion on a particular area of the financial statements. Another instance is when there is an emphasis of a matter. This occurs when the auditor wants to draw attention to a specific issue in the financial statements, such as the impact of a significant event or uncertainty. It is important for the auditor to provide clear explanations to ensure that users of the financial statements understand the reasons for these modifications.

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