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At the conclusion of the audit of Faircloth Corporation, the auditors have determined that no material misstatements exist in the client's financial statements. In a
At the conclusion of the audit of Faircloth Corporation, the auditors have determined that no material misstatements exist in the client's financial statements. In a meeting of the audit partners convened to discuss the appropriate audit opinion to render, one of the partners mentions that in the last year, the client has switched from the LIFO to the FIFO method of inventory costing. Based on this information, which of the following might the auditors decide to do? The auditors should consider adding an emphasis-of-matter paragraph. This paragraph does not indicate a problem on the part of the client, but rather emphasizes the auditors desire to draw stakeholder's attention to a particular area of the financial statements. The auditors will likely request that senior management add additional note disclosures in the financial statements. These note disclosures should provide reconciliations between the two methods for purposes of conservatism. O The auditors should consider disclaiming an opinion on all inve
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