Question
LO 17-3, 4, 5 17-40 For each of the following brief scenarios, assume that you are the CPA reporting on the company's financial statements.
LO 17-3, 4, 5 17-40 For each of the following brief scenarios, assume that you are the CPA reporting on the company's financial statements. Using the form included with this problem, describe the reporting circumstance involved, the type or types of opinion possible in the circumstance, and whether a section should be added to the audit report or whether a paragraph should be added to an existing section. Note that while other report changes may be required, this only addresses the issue of a possible additional section or paragraph being added. Because more than one report may be possible in several of the circumstances, a second "type of opinion" and "report alteration" row is added for each circumstance. For example, if the problem doesn't tell you whether a misstatement pervasively misstates the financial statements or doesn't list a characteristic that indicates pervasiveness, two reports may be possible. Page 792 In most cases, you will not need to use the second row. Do not read more into the circumstance than what is presented, and only reply "emphasis-of-matter" in auditor discretionary circumstances such as those suggested in the chapter. Unless stated otherwise, assume that the information presented is material to the financial statements. For the report modification reply for both nonpublic and public audit reports.
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