Soriano LLP is an audit firm based in Connecticut. Soriano has been hired to perform external audit
Question:
Soriano LLP is an audit firm based in Connecticut. Soriano has been hired to perform external audit for Rigoll Inc. At the closing of the audit, Soriano LLP found that there is a material inconsistency in the MD&A attached to the audited financial statements. The financial statements do not contain any mistake or misstatement. If the auditor concludes that the fnancial statements do not require revision, but requires that Rigoll Inc. eliminate the inconsistent paragraph in the MD&A.
Rigoll Inc. refused do so. Under these circumstances, the auditor may:
(a) Issue a qualified opinion after discussing the matter with the board of directors of Rigoll Inc.
(b) Issue an unqualified opinion since the other information is not part of the audited financial statements
(c) Revise the auditor’s report to include an emphasis of matter paragraph
(d) Issue an unqualified opinion
Step by Step Answer:
Auditing Assurance Services And Forensics A Comprehensive Approach
ISBN: 9783319905204
1st Edition
Authors: Felix I. Lessambo