An auditor reads management's commentary included in a county's comprehensive annual financial report and identifies a material inconsistency with the financial statements. The auditor determines that the financial statements do not require revision. Which of the following actions should the auditor take? Group of answer choices a. Request that the entity revise management's commentary. b. Include an emphasis-of-matter paragraph in the auditor's report. c. Consider withdrawing from the engagement. d. Request a client representation letter acknowledging the inconsistency.
An auditor reads management's commentary included in a county's comprehensive annual financial report and identifies a material inconsistency with the financial statements. The auditor determines that the financial statements do not require revision. Which of the following actions should the auditor take? Group of answer choices a. Request that the entity revise management's commentary. b. Include an emphasis-of-matter paragraph in the auditor's report. c. Consider withdrawing from the engagement. d. Request a client representation letter acknowledging the inconsistency.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![An auditor reads management's commentary included in a county's comprehensive annual financial
report and identifies a material inconsistency with the financial statements. The auditor determines
that the financial statements do not require revision. Which of the following actions should the
auditor take?
Group of answer choices
a. Request that the entity revise management's commentary.
b. Include an emphasis-of-matter paragraph in the auditor's report.
c. Consider withdrawing from the engagement.
d. Request a client representation letter acknowledging the inconsistency.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F892cdfda-9c63-4bbf-b9ca-021a6e49831b%2F80eb221e-cfbc-4fab-8ebc-d3c5311d2788%2Fvfslxbl_processed.jpeg&w=3840&q=75)
Transcribed Image Text:An auditor reads management's commentary included in a county's comprehensive annual financial
report and identifies a material inconsistency with the financial statements. The auditor determines
that the financial statements do not require revision. Which of the following actions should the
auditor take?
Group of answer choices
a. Request that the entity revise management's commentary.
b. Include an emphasis-of-matter paragraph in the auditor's report.
c. Consider withdrawing from the engagement.
d. Request a client representation letter acknowledging the inconsistency.
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