At the completion of the audit of Zenith Enterprises, LLC, the auditors have made several requests of the client firm to correct two material misstatements related to allowances for doubtful accounts. The client has advised the audit firm that they will not be correcting the misstatements. As a result of this information, which of the following courses of action might the audit firm decide to take? (Select all that apply) The auditors will request written assurances from management indemnifying them from any litigation in this area, and will proceed with issuance of an unmodified opinion. The auditors will likely be forced to issue a modified opinion, such as a qualified opinion. In this situation, the auditors are unlikely to issue a clean audit opinion, as management refused to correct the misstatements. The auditors will likely have to issue a modified opinion, Examples of these would be a disclaimer of opinion or a clean opinion. McGoldrick CPAs have completed the audit for Stones Corporation and issued the audit opinion on the client's financial statements. The firm is yet to release the audited financial statements to the public. Before the report is released, the CPA firm learns that a majo loan refinance the client had been working on has been denied by the creditor. As a result of this, which of the following might the auditor decide to do? (Select all that apply.) The auditor may contact the client's senior management and advise that they will be issuing an amended audit opinion. In this case, it will be an adverse opinion. The audit firm may decide to perform additional audit procedures and dual date the audit report. The audit firm may elect to issue a written notice to the client's management, advising that the audit firm is not legally liable for any litigation arising from the refinance denial. The audit firm may elect to perform additional audit procedures and amend the date of the audit report to the date of the subsequently discovered fact. In addition to the attestation engagements that CPA firms routinely perform, other services are typically offered also. Which of the following correctly lists and describes other service that CPA firms may also perform for clients? (Select all that apply.) CPA firms may provide services related to compilations of financial statements, whereby the firm assists management in preparing and presenting financial statements. CPA firms may also provide services related to preparation of funancial statements. This service does not provide an opinion on the fairness of the financial statements: CPA firms may provide financial statement review services, whereby the CPA firm reviews the opinion expressed on the financial statements by the internal audit function. CPA firms may provide attestation services such as reviewing client's financial statements as a subject matter expert but not expressing an opinion on them
