Without an audit a troubled institutions management

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Unformatted text preview: U.S. company of your choice. Identify whether or not the audit report is an unqualified, or “clean,” opinion. LO 9 1-29 Using the audit report included in Chapter 1, identify and record the phrases or words that indicate to the users that the financial statements are not an “exact” representation of the results of operations and financial position of a company. D ISCUSSION CASE LO 1,3,5,6,9,10 1-30 The Government Accountability Office (GAO) gave the following results in a report based on an examination of 39 failed banks:10 The early warning system provided by bank call reports* is seriously flawed. The 39 failed banks’ call reports did not provide the regulators with advance warning of the true magnitude of the deterioration in the banks’ financial condition. As a result of the asset valuations FDIC prepared after these banks failed, loss reserves increased from $2.1 billion to $9.4 billion. A major portion of the $7.3 billion deterioration in asset values was not previously...
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