When there is a material inconsistency between the financial report and other information in the annual report and the client refuses to change the information, the auditor should:
A) include an emphasis of matter section in the audit report.
B) issue a qualified opinion.
C) do nothing as the audit opinion is confined to the financial report.
D) advise ASIC and the ASX.

Question

Quizplus · Accepted Answer

The auditor should include an emphasis of matter section in the audit report to highlight the inconsistency, as it is important for users to be aware of the discrepancy between the financial report and other information.

When There Is a Material Inconsistency Between the Financial Report