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Unformatted text preview: f the auditor’s standard
f. Explicitly referred to in the opinion paragraph of the auditor’s standard
report. LO 9 1-23 A client has used an inappropriate method of accounting for its pension
liability on the balance sheet. The resulting misstatement is moderately
material, but the auditor does not consider it to be pervasive. The auditor is unable to convince the client to alter its accounting treatment. The
rest of the ﬁnancial statements are fairly stated in the auditor’s opinion.
Which kind of audit report would an auditor most likely issue under these
a. Standard unqualiﬁed opinion.
b. Qualiﬁed opinion due to departure from GAAP.
c. Adverse opinion.
d. No opinion at all. P ROBLEMS
All applicable problems are available with McGraw-Hill’s Connect™ Accounting.
LO 1,2,3 mes25435_ch01_001-032.indd
mes25435_ch01_001-032.indd 29 1-24 You recently attended your ﬁve-year college reunion. At the main reception, you encountered an old friend, Lee Beagle, who recently graduated
from law school and...
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This note was uploaded on 12/08/2012 for the course ACCT 564 at Washington University in St. Louis.