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
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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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