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When the engagement team finds that a planned procedure cannot be performed (e.g. inventory not observable due to location), the auditor should:
AInflate the materiality
BTreat it as immaterial and move on
CConsider whether sufficient appropriate evidence is available from alternative procedures; if not, modify the opinion (qualified or disclaimer)
DIssue a clean opinion
Answer & Solution
Correct answer: D. Issue a clean opinion
1. SA 705 governs modifications when scope is limited.
2. Alternative procedures are explored first.
3. A clean opinion despite unrelieved scope limitation is improper.
_Source: ICAI BoS CA Final Paper 3, Ch 2 "Audit Planning Strategy and Execution"_
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