The following auditors report was drafted by Maddux, Glavine, & Smoltz, CPAs, following the completion of the
Question:
The following auditor’s report was drafted by Maddux, Glavine, & Smoltz, CPAs, following the completion of the audit of the financial statements of NORTEL NETWORKS CORP (publicly listed), for the year ended December 31, 2017. The report was submitted to the engagement partner, who reviewed the audit workpapers and properly concluded that anunqualified opinion should be issued. In drafting the report, the following items were considered.
The 2017 financial statements are affected by an uncertainty surrounding a lawsuit, the outcome of which cannot presently be estimated. The lawsuit is adequately disclosed in the notes of the financial statements.
The financial statements for the year ended December 31, 2016 are to be presented for comparative purposes. Maddux, Glavine, & Smoltz previously audited these statements and issued an unqualified opinion.
Audit report on internal control over financial reporting will be issued separately from audit report on financial statements.
Auditing and Assurance Services A Systematic Approach
ISBN: 978-1259162343
9th edition
Authors: William Messier, Steven Glover, Douglas Prawitt