Answered step by step
Verified Expert Solution
Question
1 Approved Answer
GKC, CPA expressed an adverse opinion on the operating effectiveness of internal control on December 31, 2020 for TQI, Inc. This was due to a
GKC, CPA expressed an adverse opinion on the operating effectiveness of internal control on December 31, 2020 for TQI, Inc. This was due to a material weakness related to the key control activity, monitoring of accounts receivable arrears by the credit manager. The auditor expressed an unqualified opinion on the financial statements. In a planning meeting for the 2021 audit, a new audit associate was adamant that the firm made a mistake in issuing an unqualified opinion on the 2020 financial statements when it was mentioned that the control, concluded to be a material weakness, did not also operate effectively for most of 2020. Explain how the unqualified opinion on the 2020 financial st.t.tements was possible. Incorporate the audit risk model in your response
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started