An accountant of an audit client made the following statement: It is important to read the notes

Question:

An accountant of an audit client made the following statement: It is important to read the notes to financial statements, even though they are presented in technical language and are incomprehensible. Auditors may reduce their exposure to third-party liability by stating some-thing in the notes that contradicts completely what the client has presented in the or income statement.
Evaluate the above statement and indicate:
a. Areas of agreement, if any.
b. Areas of misconception, incompleteness, or fallacious reasoning included in the statement.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...