The auditors know that the client’s accounting for deferred income taxes is not in accordance with generally accepted accounting principles, but because of a very significant scope limitation they have not been able to determine the amount of the misstatement involved and have not been able to form an opinion on the financial statements taken as a whole. What type of report should they issue?
Answer to relevant QuestionsSection 404 of the Sarbanes-Oxley Act of 2002 includes two sections. Describe those sections.While performing a walk-through, auditors ordinarily make certain inquiries of employees. Provide three examples of such inquiries.If an adverse internal control report is issued by the auditors, may an unqualified report be issued on the financial statements?Your working papers for an integrated audit being performed under PCAOB Standard No. 5 include the narrative description below of the cash receipts and billing portions of internal control of Slingsdale Building Supplies, ...Comment on the following: “Inquiry alone does not provide sufficient evidence to support the operating effectiveness of a control.”
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