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After completing the audit of Fairman Corporation, the auditors, Hitchcock CPAs has concluded that an unmodified opinion is the appropriate audit opinion to issue. One

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After completing the audit of Fairman Corporation, the auditors, Hitchcock CPAs has concluded that an unmodified opinion is the appropriate audit opinion to issue. One issue that did come to light during the audit was the forthcoming maturity of a previous large bond issue by the client, and concern over the lack of funds in the sinking fund to cover the large maturity repayment. Based on this. information, which of the following might the auditors decide to do? The auditors may decide to disclaim an opinion on the client's financial statements. If the bond maturity ends up bankrupting the client, it is better for the audit firm to not be associated with them. The auditors may decide to request firm management add a note disclosure to the financial statements in the interests of transparency. This will allow firm stakeholders to be fully aware of the upcoming maturity. The auditors may decide to issue a qualified opinion on the client's financial statements. The qualified opinion would cover everything except the bonds payable account, for which the auditors will disclaim liability. The auditors may decide to add a note disclosure in the financial stotements, alerting firm stakeholders to this upcoming. event and disclaiming amy liability associated with it

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