What type of audit report would be appropriate in each of the following scenarios? Explain. (a) There
Question:
(a) There is uncertainty relating to a pending exceptional litigation matter that is adequately disclosed in the notes.
(b) The client's records are inadequate and the auditor is unable to obtain sufficient appropriate evidence.
(c) There is a material uncertainty that casts a significant doubt on the entity's ability to continue as a going concern and this uncertainty is adequately disclosed.
(d) There is a GAAP departure concerning a highly material item.
(e) The client will not allow the auditor to contact the client's legal counsel.
(f) The client's accounting records have been destroyed.
(g) There is a material misstatement in the client's inventory account. The misstatement is deemed to be material but not pervasive to the financial statements.
(h) Inventories are misstated. The misstatement is deemed to be material but not pervasive to the financial statements.
Audit Report
The audit report is issued by a certified public accountant who is appointed by the shareholders to provide assurance upon the truth and fairness of the financial statements prepared by the managers of the company. Audit report contains the... GAAP
Generally Accepted Accounting Principles (GAAP) is the accounting standard adopted by the U.S. Securities and Exchange Commission (SEC). While the SEC previously stated that it intends to move from U.S. GAAP to the International Financial Reporting Standards (IFRS), the...
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Question Posted: