Audit External

6 points SA Sarah is the audit Senior for Cortez and Jameson CPA firm, and her current client firm is Party Favors, Inc. The client has a calendar year end December 31st. During the audit, Party Favors, Inc would not allow the auditors to observe the inventory count on the last day of the year. The CEO, Max Cergio, stated that doing so was impractical because New Year's Eve is the busiest day of the year for the firm and it would obstruct business and furthermore there is a lot of cleanup and reorganizing that must take place in the days just after New Years Eve Mac said the closest date that inventory could be observed in the 15th of January, and that the auditors should not observe inventory counts at more than four stores per day. The company has 200 locations and Sarah wanted to test inventory at 24 stores inventory for Party Favors, Inc. is at least material and may be pervasively material Sarah te the client that the auditors cannot give them a clean opinion under these terms, but Max Cergio, the CEO, refuses to cooperate A Thinking about audit language what type of limitation is this (2 points B. If the audit team determines that the clients terms do not allow the auditors to collect the required evidence, what audit report or reports could Sarah recommend for Party Favors, Inc. - explain your reasoning (4 points) Moving to the next question prevents changes to this answer Question 4 Question 44 6 points Sarah is the audit Senior for Cortez and Jameson CPA fim, and her current lentfirms Party Favors, Inc. The chontas a calendar year and December to Ouring the audt. Party Favors, Inc. would not allow the auditors to observe the inventory count on the last day of the year The CEO, Max Cergio, stated that doing impact on New Years Eve is the busiest day of the year for the firm and it would obstrud business, and furthermore there is a lot of cleanup and reorganing that must take place in the days just after years Eve Max said the closest date that inventory could be observed is the 15th of January, and that the auditors should not observe inventory counts at more than foursos per day. The company has 200 locations, and Sarah wanted to test inventory at 24 stores Inventory for Party Favors, Inc. is last maternal and may be pervasive mat Sarah is the client that the auditors cannot give them a chean non under these terms but Max Corgio, the CEO, refuses to cooperate A Thinking about suot language what type of limitation this points? B. If the audil team termines that the clients terms do not allow the auditors to collect the toured evidence what it report or reports could Sarah reconen for Party Favors, Inc. -explain your reasoning 14 points) Far the toolbar, press ATFOOD ALTENF10Mac B TVS Paragraph Aris 100 PE A 2 TWO O Q 3911 28 x x 1992 - PM 102