A client decides not to record an auditors proposed adjustments that collectively are not material and wants

Question:

A client decides not to record an auditor’s proposed adjustments that collectively are not material and wants the auditor to issue the report based on the unadjusted numbers. Which of the following statements is correct regarding the financial statement presentation?
(1) The financial statements are free from material misstatement, and no disclosure is required in the notes to the financial statements.
(2)
The financial statements do not conform with generally accepted accounting principles (GAAP).
(3) The financial statements contain unadjusted misstatements that should result in a qualified opinion.
(4) The financial statements are free from material misstatement, but discl

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Auditing The Art and Science of Assurance Engagements

ISBN: 978-0134613116

14th Canadian edition

Authors: Alvin A. Arens, Randal J. Elder, Mark S. Beasley, Joanne C. Jones

Question Posted: