Lesley, a PA, is auditing the financial statements of a jewellery store specializing in the sale of fine diamonds. Because of the difficulties in authenticating gemstones, Lesley reviews a report from a gemologist retained by the client who assisted in valuing the inventory. However, upon inquiry of various sources, Lesley is not satisfied that the gemologist is qualified to do the work. Accordingly, she selects a large sample of stones from those included on the client’s inventory listing to ensure that they indeed exist and appear to be genuine. She does not notice anything unusual, and therefore issues an unqualified opinion on the client’s financial statements.
REQUIRED
Assess Lesley’s actions.