Lakeside Company has retained you to conduct an audit so that it will be able to support its application for a bank loan with audited financial statements. The president of Lakeside states that you will have unlimited access to all records of the company and may carry out any audit procedures you consider necessary, except that you are not to communicate with customers.
The president feels that contacts with customers might lead them to believe that Lakeside is in financial difficulty. Under these circumstances, will it be possible for you to issue the auditors’ standard unqualified audit report? Explain.