For each situation presented below, match it to the type of audit opinion that should be issued. The audit client's year-end is December 31, 2023. Prompts As described in Note 14, subsequent to year-end, there was a fire at one of the client's main manufacturing facilities. Answers Select match 4 Unmodified Opinion Emphasis of Matter 2 3 There was a disagreement with the Controller over the accounting policy used to record its investment in a subsidiary company. The Company has not consolidated its subsidiary and the investment is accounted for using the cost basis. Had the subsidiary been consolidated, many elements in the financial statements would have been materially affected. Unmodified Opinion Adverse Opinion Disclaimer of Opinion Qualified Opinion When auditing inventory, the auditor was denied access and could not attend the inventory counts performed on Dec 29 in the client's 3 remote warehouses, which contain approximately 50% of the ending inventory balance. Select match
For each situation presented below, match it to the type of audit opinion that should be issued. The audit client's year-end is December 31, 2023. Prompts As described in Note 14, subsequent to year-end, there was a fire at one of the client's main manufacturing facilities. Answers Select match 4 Unmodified Opinion Emphasis of Matter 2 3 There was a disagreement with the Controller over the accounting policy used to record its investment in a subsidiary company. The Company has not consolidated its subsidiary and the investment is accounted for using the cost basis. Had the subsidiary been consolidated, many elements in the financial statements would have been materially affected. Unmodified Opinion Adverse Opinion Disclaimer of Opinion Qualified Opinion When auditing inventory, the auditor was denied access and could not attend the inventory counts performed on Dec 29 in the client's 3 remote warehouses, which contain approximately 50% of the ending inventory balance. Select match
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:For each situation presented below, match it to the type of audit opinion that should be issued. The audit client's year-end is
December 31, 2023.
Prompts
As described in Note 14, subsequent to
year-end, there was a fire at one of the
client's main manufacturing facilities.
Answers
Select match
4
Unmodified Opinion Emphasis of Matter
2
3
There was a disagreement with the
Controller over the accounting policy used
to record its investment in a subsidiary
company. The Company has not
consolidated its subsidiary and the
investment is accounted for using the cost
basis. Had the subsidiary been
consolidated, many elements in the
financial statements would have been
materially affected.
Unmodified Opinion
Adverse Opinion
Disclaimer of Opinion
Qualified Opinion
When auditing inventory, the auditor was
denied access and could not attend the
inventory counts performed on Dec 29 in
the client's 3 remote warehouses, which
contain approximately 50% of the ending
inventory balance.
Select match
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