Morris, CPA, suspects that a pervasive scheme of illegal bribes exists throughout the operations of Worldwide...

 

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Morris, CPA, suspects that a pervasive scheme of illegal bribes exists throughout the operations of Worldwide Im port-Ex port, Inc., a newv audit client. Morris notified the audit committee and Worldwide's legal counsel, but neither would assist Morris in determining whether the a mounts involved were material to the financial statements or whether senior management was in volved in the scheme. Under these circumstances, Morris most likely should A. Express an unmodified opinion with an other-matter paragraph. B. Disclaim an opinion on the financial statements. C. Express an adverse opinion on the financial statements. D. Issu e a special report regarding the illegal bribes. Morris, CPA, suspects that a pervasive scheme of illegal bribes exists throughout the operations of Worldwide Im port-Ex port, Inc., a newv audit client. Morris notified the audit committee and Worldwide's legal counsel, but neither would assist Morris in determining whether the a mounts involved were material to the financial statements or whether senior management was in volved in the scheme. Under these circumstances, Morris most likely should A. Express an unmodified opinion with an other-matter paragraph. B. Disclaim an opinion on the financial statements. C. Express an adverse opinion on the financial statements. D. Issu e a special report regarding the illegal bribes.

Answer rating: 100% (QA)

Answer Solution Morris should disclaim an opinion on the financial statements Explanation Morris sho... View the full answer