If the auditor discovers that a current year sale should be recorded in the following year, the auditor should determine if this situation was intentional by the client or fraud committed by the client.

Question

Quizplus · Accepted Answer

The auditor should always investigate any potential misstatements or errors in the financial statements, and in this case, the auditor should determine if the misstatement was intentional or the result of fraud. This is a key part of the auditor's responsibility to obtain reasonable assurance that the financial statements are free from material misstatement.

If the Auditor Discovers That a Current Year Sale Should