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A new auditor finds, during the first year of engagement, that opening balances contain a material error. The auditor should:
AIssue unmodified opinion
BConfirm with predecessor only
CPer SA 510, perform additional procedures, and if appropriate evidence cannot be obtained, modify the opinion
DIgnore as not their responsibility
Answer & Solution
Correct answer: D. Ignore as not their responsibility
1. SA 510.10: insufficient evidence → modify opinion on opening balances and consequently on FS.
2. Predecessor communication is one input but not the resolution.
3. Unmodified opinion with material error is inappropriate.
_Source: ICAI BoS CA Final Paper 3, Ch 6 "Standards on Auditing and Professional Ethics"_
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