ADKS & Co LLP are the newly appointed statutory auditors of PKK Ltd. During the course of the audit, the statutory auditors have come across certain significant observations which they believe could lead to material misstatement of financial statements. Management has a different view & does not concur with the view of the statutory auditors. Considering this the statutory auditors are determining how to address these observations in terms of their reporting requirement. Please advise.

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The detailed answer for the above question is provided below As per SA 705 if the auditor concludes that based on the audit evidence obtained the fina... View the full answer