A lawyer’s refusal to furnish the information requested in an inquiry letter - would be a limitation on the scope of the audit. Implication here is that this is sufficient enough to preclude an unmodified opinion. Contingent on the amount of the scope of limitation it would either be qualified or disclaimed.
If the litigation’s effect on the financial statements could be material, the the most likely action would be to add an explanatory paragraph to the auditor’s report (uncertainty). cc: Audit
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