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You are the audit partner in the following material scenario: The audit client acquired computers for their staff under a finance lease arrangement. From your

You are the audit partner in the following material scenario: The audit client acquired computers for their staff under a finance lease arrangement. From your examination of the lease expense account you believe that there is a possibility that there is a material understatement. Unfortunately, management refuses to allow you to expand your audit work in order to verify whether the account is actually misstated.

Required: Analyse and explain how the situation would affect your audit report.

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