Explain what type of audit report is used when The entity would not allow the CPA to confirm any of the accounts receivable. All other procedures were performed as considered necessary and no other issues were encountered, but the CPA was unable to satisfy themselves with regard to the balance in accounts receivable. Assume that the accounts receivable comprised 40% of the total assets of the entity?
Solution
When an auditor of financial statements does not confirm material accounts receivable, but is satisfied by the application of alternative auditing procedures, she normally should:
issue an unqualified opinion with no reference to this omission but be prepared to defend the action.
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Capitol Tech U Doctoral Presentation - April 2024.pptx
Explain what type of audit report is used when The entity would not al.docx
1. Explain what type of audit report is used when The entity would not allow the CPA to confirm
any of the accounts receivable. All other procedures were performed as considered necessary and
no other issues were encountered, but the CPA was unable to satisfy themselves with regard to
the balance in accounts receivable. Assume that the accounts receivable comprised 40% of the
total assets of the entity?
Solution
When an auditor of financial statements does not confirm material accounts receivable, but is
satisfied by the application of alternative auditing procedures, she normally should:
issue an unqualified opinion with no reference to this omission but be prepared to defend
the action.
