28-30

A nonpublic client has provided required supplementary information with its audited 28 financial statements. The auditor's proper reporting responsibility includes: A) The required supplementary information should not be referred to. B) An emphasis-of-matter paragraph should be added to the audit report. C) An adverse opinion on the required supplementary information. D) A separate report should be issued on the required supplementary information. In which of the following types of reports do the auditors express negative assurance? A) Letters for underwriters. B) Reports on audits of financial statements on a basis other than generally accepted accounting principles. C) Reports on summary financial statements. D) Reports on audits of specified accounts. An accountant has been engaged to prepare a nonpublic client's financial statements. While preparing the financial statements, the accountant finds a number of material misstatements related to journal entries. The client refuses to correct the misstatements. Which of the following is correct? A) The accountant should withdraw from the engagement. B) A report with an adverse opinion should be issued. C) The accountant should prepare the financial statements and present them using the misstated journal entries. D) All regulatory agencies should immediately be notified