A CPA desires to issue an unqualified audit opinion on an audit client\'s financ

Question

A CPA desires to issue an unqualified audit opinion on an audit client's financial statements even though they contain a material departure from GAAP. In the opinion of the CPA the departure resulted from an unusual situation in which a literal application of GAAP would be misleading to users of the client's financial statements. Is it appropriate for the CPA to issue an unqualified audit opinion under these circumstances?

According to the AICPA Code of Professional Conduct a CPA must be independent in providing which of the following services?

An auditor of a publicly held corporation delivered an audit report, dated March 23, 2018, containing an unqualified audit opinion to his client on April 3, 2018. On May 10, 2018 while reading the daily news he read an article about his audit client settling a lawsuit filed by a supplier for breach of contract. The auditor had not discovered the lawsuit during the course of his audit. What is the first action that the auditor should take in this situation?

The CEO of an audit client routinely has paid for his personal gasoline and laundry expenses with the corporate credit card. The amount of these expenditures clearly is immaterial to the corporation. The auditor has a professional obligation to

Explanation / Answer

Answer

Part 1 - (b) as any deviation from GAAP must be mentioned

Part 2 - (a) independence is one of key aspect is audit

Part 3 - (d) he should present effect on financial statement

Part 4 - (d) communicate to BOD and report

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