Question
Management at an audit client doesnt want to disclose certain information in their upcoming audit report as the transaction is pending and not final. The
Management at an audit client doesnt want to disclose certain information in their upcoming audit report as the transaction is pending and not final. The auditors understand managements position but concluded per GAAP a disclosure is warranted, even if the deal is pending. The audit team knows theres little downside if they ignore whats right and agree with management. Theyre contemplating on rationalizing the fact that its just a disclosure and doesnt impact any numbers in the financial statements. However, theres a lot of potential downside (i.e. loss of client) if they push on the disclosure requirements of GAAP. What should they do?
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