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Unformatted text preview: e. A modified, unqualified report with a reference in the introduction to the specific area audited by the other firm with quantitative data on its relationship to total assets and/or total income. It will also be necessary to refer to the work of the other auditors in the scope and opinion paragraph. f. In the second year of your audit relationship, the client has decided to disclose an ongoing contingent liability in its financial statements for the first time. Their failing to do so last year caused you to issue a qualified audit report. f. An unqualified report with an explanatory paragraph changing the prior period's audit opinion (assuming management restates the prior period's financial statements for comparative purposes): The results of prior periods have been restated to reflect an estimate of the contingent liability (as seen in footnote _) in accordance with accounting for contingencies. As a result, we remove our qualification of ____'s financial statements....
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This note was uploaded on 10/05/2011 for the course ACG 5637 taught by Professor Monikacaushoulli during the Fall '08 term at University of Florida.
- Fall '08