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After performing all phases of the current audit, the auditor determines that the client is in noncompliance with several required securities regulations. The auditor then
After performing all phases of the current audit, the auditor determines that the client is in noncompliance with several required
securities regulations. The auditor then prepares a modified audit report to reflect this noncompliance but the client refuses to
accept the auditor's report claiming the level of materiality does not warrant such an opinion. Under this scenario, what is the
auditor's proper course of action?
A Withdraw from the engagement and contact the applicable regulatory authorities in writing.
B Issue the modified report.
C Withdraw from the engagement and notify those charged with governance in writing.
D Issue an unmodified opinion with an emphasisofmatter paragraph explaining the materiality issue.
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