For the following independent situations, assume that you are the audit partner on the engagement: 2. Company A has 20% inventory held by Just Department Store on a consignment basis. Confirmation request was not allowed to be sent to Just Department Store by Company A. You were only given the consignment agreement. Inventory represents 30% of the total asset. Discuss the most appropriate type of opinion the auditor should issue. Explain briefly the reason for the opinion.
For the following independent situations, assume that you are the audit partner on the engagement: 2. Company A has 20% inventory held by Just Department Store on a consignment basis. Confirmation request was not allowed to be sent to Just Department Store by Company A. You were only given the consignment agreement. Inventory represents 30% of the total asset. Discuss the most appropriate type of opinion the auditor should issue. Explain briefly the reason for the opinion.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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For the following independent situations, assume that you are the audit partner on the engagement:
2. Company A has 20% inventory held by Just Department Store on a consignment basis. Confirmation request was not allowed to be sent to Just Department Store by Company A. You were only given the consignment agreement. Inventory represents 30% of the total asset.
Discuss the most appropriate type of opinion the auditor should issue. Explain briefly the reason for the opinion.
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