Question 1

You are auditing a company whose management has intentionally made adjustments to various financial statement items that are not in accordance with generally accepted accounting principles. This behavior has occurred over a number of accounting periods. None of the individual adjustments by themselves are material, and the aggregate effect on the financial statements taken as a whole is immaterial. Top management of the client is aware of these misstatements and considers them part of their strategic management of earnings.

Required:-

Explain how you, as the independent auditor, should respond to this situation.