An auditor concludes that there is a material inconsistency in the other informa

Question

An auditor concludes that there is a material inconsistency in the other information in an annual report to shareholders containing audited financial statements. The auditor believes that the financial statements do not require revision, but the client is unwilling to revise or eliminate the material inconsistency in the other information. Under these circumstances, what action would the auditor most likely take next

Consider the situation closed because the other information is not the audited financial statements

Issue and except for qualified opinion after discussing the matter with the clients audit committe

Disclaim an opinion on the financial statements after explaining the materiual inconsistency in a other-matter paragraph

Explanation / Answer

As the Auditor belives that the financials statements does not requires revision, and other information required , but client is unwilling to revise or eliminte material inconsistency in the other information , then the auditor must discuss with the those charged with governance (audit committe) , or the appointing authority and decide the action , a disclosure must be made in the his report,

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