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Unformatted text preview: would generally be either a qualified opinion or a disclaimer of opinion for a scope limitation imposed by the client’s management, depending on the materiality of accounts receivable e . Since I am satisfied about the inventory balance using alternative audit procedures, a standard unqualified audit report can be issued. f . Since the client failed to disclose the related-party transaction, I would probably issue a qualified or adverse audit report depending on the materiality of the matter. The client’s failure to disclose means that the financial statements do not comply with GAAP. g. Since the change in accounting principle is properly accounted for, As the auditor, I would issue an unqualified audit report with an explanatory paragraph for a lack of consistency in the application of GAAP....
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This note was uploaded on 02/29/2012 for the course ACCOUNTING 470 taught by Professor Kwong during the Spring '11 term at Franklin.
- Spring '11