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An auditor is auditing the clients 12/31/2019 financial statements. The clients foreign assets, which are material, are nationalized by another government on 1/26/2020. The client
An auditor is auditing the clients 12/31/2019 financial statements. The clients foreign assets, which are material, are nationalized by another government on 1/26/2020. The client argues that this event should be recognized in the 12/31/2019 financial statements because it is misleading for the balance sheet to show assets at 12/31/2019 that the client no longer owns three weeks later. What opinion should the auditor give on these financial statements?
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