An auditor concludes that there is a material inconsistency in the other information in an annual report to shareholders containing an audited financial report.If the auditor concludes that the financial report does require revision, but the client refuses to revise or eliminate the material inconsistency, the auditor may:
A)consider the matter closed since the other information is not covered by the audited financial report.
B)issue a qualified opinion after discussing the matter with the client's board of directors.
C)revise the auditor's report to include an Emphasis of Matter paragraph describing the material inconsistency.
D)disclaim an opinion on the financial report after explaining the material inconsistency in a separate explanatory paragraph.

Question

Quizplus · Accepted Answer

The auditor can revise the auditor's report to include an Emphasis of Matter paragraph to draw attention to the material inconsistency when the financial report does not require revision but there's a refusal to correct the inconsistency in the other information. This action helps to ensure that the users of the financial report are aware of the material inconsistency identified by the auditor.

An Auditor Concludes That There Is a Material Inconsistency in the Other