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Management believes, and the auditor is satisfied, that a material loss probably will occur when pending litigation is resolved. Management is unable to make a
Management believes, and the auditor is satisfied, that a material loss probably will occur when pending litigation is resolved. Management is unable to make a reasonable estimate of the amount or range of the potential loss, but fully discloses the situation in the notes to the rinancia statements. It the auditor wishes to cal attention to the matter
and management does not make an accrual in the financial statements, the auditor should issue a(n):
- qualified report due to a departure from GAAP.
- standard unmodified auditor's report.
- qualified report due to a scope limitation.
- unqualified report with an explanatory paragraph.
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