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• <br />• The segregation of incompatible dutiesl <br />• The periodic verification of the underlying <br />facts reflected in accounting records (e.g., the <br />physical inventory of capital assets) <br />• The regular analytical review of accounting <br />data (i.e., the systematic comparison of ac- <br />counting data to other data, both accounting <br />and non-accounting, to assess their reason- <br />ableness). <br />1Duties are incompatible if they permit an employee to both <br />commit and conceal an irregularity in the ordinary course of <br />that employee's duties. <br />What is a "disclaimer of opinion"? <br />As mentioned in the discussion on qualified opin- <br />ions, auditors sometimes do not have all of the <br />underlying documentation needed to support an <br />unqualified opinion on the fair presentation of <br />the financial statements. Beyond a certain point, <br />the amounts in question may be so material as to <br />make it impossible to render any opinion on all <br />or a significant portion of the financial state- <br />ments. In that case, the auditor issues a report <br />that disclaims an opinion on all or a portion of <br />the financial statements. <br />Z5 AN ELECTED OFFICIAL'S GUIDE <br />TO AUDITING <br />33 <br />