Limited Scope Audit & Accountant's Opinion

[Leopurrd]

Hi everyone!

Stupid question from my neck of the woods.....

If an accountant performs a limited scope audit, is it possible for them to issue an unqualified opinion? I was always under the impression that any limited scope audit could only issue a disclaimer, since they didn't look at/test the procedures at the financial institution.

Thanks!!!!

Vicki

[JanetM]

Limited scope audit disclaims an opinion due to the limited scope. The only way to have an opinion issued is to do full scope audit.

[Leopurrd]

Janet,

Thanks for your reply! I thought that was the case but became unsure when I saw several Form 5500's with unqualified opinions with the limited scope box checked. SCARY!!!

Vicki

[JanetM]

Vicki,

I have seen it too. Is misunderstanding about what disclaimer is.

[Lori Friedman]

Yeah, you see that very frequently. Too many Form 5500 preparers mistakenly believe that anything other than an unqualified opinion is somehow "bad" and will taint the plan. In reality, a limited scope audit is a perfectly valid option with a much lower cost to the plan (or its sponsor).