AnnaLisa, an auditor for N. M. Neal & Associates, is prevented by the management of Lileah Company
Question:
AnnaLisa, an auditor for N. M. Neal & Associates, is prevented by the management of Lileah Company from auditing controls over inventory. Lileah is a public company. Management explains that controls over inventory were recently implemented by a highly regarded public ac- counting firm that the company hired as a consultant and insists that it is a waste of time for AnnaLisa to evaluate these controls. Inventory is a material account, but procedures performed as part of the financial statement audit indicate the account is fairly stated. AnnaLisa found no material weaknesses in any other area of the client's internal control re- lating to financial reporting. What kind of report should AnnaLisa issue on the effectiveness of Lileah's internal control?
a. An unqualified report.
b. An adverse report.
c. A disclaimer of opinion.
d. An exculpatory opinion.
Step by Step Answer:
Auditing And Assurance Services
ISBN: 9780073527086
7th Edition
Authors: William MessierSteven Glover