An accountant of an audit client made the following statement: It is important to read the notes to financial statements, even though they are presented in technical language and are incomprehensible. Auditors may reduce their exposure to third-party liability by stating something in the notes that contradicts completely what the client has presented in the balance sheet or income statement. Evaluate the above statement and indicate:

a. Areas of agreement, if any.

b. Areas of misconception, incompleteness or fallacious reasoning included in the statement.

Answer rating: 100% (QA)

a 1 The first sentence of the given statement is to some extent true The notes of the financial stat... View the full answer