SlideShare a Scribd company logo
1 of 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.

More Related Content

More from rtodd432

More from rtodd432 (20)

Explain the purpose of a data member-SolutionAnswer Data Member It is.docx
Explain the purpose of a data member-SolutionAnswer Data Member It is.docxExplain the purpose of a data member-SolutionAnswer Data Member It is.docx
Explain the purpose of a data member-SolutionAnswer Data Member It is.docx
 
Explain the function of the following methods in LinkedList 1- addFirs.docx
Explain the function of the following methods in LinkedList 1- addFirs.docxExplain the function of the following methods in LinkedList 1- addFirs.docx
Explain the function of the following methods in LinkedList 1- addFirs.docx
 
Explain the motivation behind using a header file for a C program-Solu.docx
Explain the motivation behind using a header file for a C program-Solu.docxExplain the motivation behind using a header file for a C program-Solu.docx
Explain the motivation behind using a header file for a C program-Solu.docx
 
Explain the effect doping towards an intrinsic silicon- Give one examp.docx
Explain the effect doping towards an intrinsic silicon- Give one examp.docxExplain the effect doping towards an intrinsic silicon- Give one examp.docx
Explain the effect doping towards an intrinsic silicon- Give one examp.docx
 
Explain the difference between private and proctected members of a cla.docx
Explain the difference between private and proctected members of a cla.docxExplain the difference between private and proctected members of a cla.docx
Explain the difference between private and proctected members of a cla.docx
 
Explain how goverment deficit lead to increases in the money supply-.docx
Explain how goverment deficit lead to increases in the money supply-.docxExplain how goverment deficit lead to increases in the money supply-.docx
Explain how goverment deficit lead to increases in the money supply-.docx
 
Explain how doping Si allows you to transport charges in a detector-So.docx
Explain how doping Si allows you to transport charges in a detector-So.docxExplain how doping Si allows you to transport charges in a detector-So.docx
Explain how doping Si allows you to transport charges in a detector-So.docx
 
Explain how an --interest group-- (or --special interest group--) may.docx
Explain how an --interest group-- (or --special interest group--) may.docxExplain how an --interest group-- (or --special interest group--) may.docx
Explain how an --interest group-- (or --special interest group--) may.docx
 
Explain how stock price volatility is more likely to imply risk than e.docx
Explain how stock price volatility is more likely to imply risk than e.docxExplain how stock price volatility is more likely to imply risk than e.docx
Explain how stock price volatility is more likely to imply risk than e.docx
 
Explain the concept entropy Explain the concept entropySolutionAnswe.docx
Explain the concept entropy   Explain the concept entropySolutionAnswe.docxExplain the concept entropy   Explain the concept entropySolutionAnswe.docx
Explain the concept entropy Explain the concept entropySolutionAnswe.docx
 
Explain how would you determine a covalent bond compounds bond using L.docx
Explain how would you determine a covalent bond compounds bond using L.docxExplain how would you determine a covalent bond compounds bond using L.docx
Explain how would you determine a covalent bond compounds bond using L.docx
 
Expansive (swelling) clays exist in various areas across North America.docx
Expansive (swelling) clays exist in various areas across North America.docxExpansive (swelling) clays exist in various areas across North America.docx
Expansive (swelling) clays exist in various areas across North America.docx
 
FInd and invertible matrix U so that UR - R is in Reduced Row echelon.docx
FInd and invertible matrix U so that UR - R is in Reduced Row echelon.docxFInd and invertible matrix U so that UR - R is in Reduced Row echelon.docx
FInd and invertible matrix U so that UR - R is in Reduced Row echelon.docx
 
Financial intermediaries play a crucial role in an economic crisisthey.docx
Financial intermediaries play a crucial role in an economic crisisthey.docxFinancial intermediaries play a crucial role in an economic crisisthey.docx
Financial intermediaries play a crucial role in an economic crisisthey.docx
 
Financial Institutions Describe each of the following financial instit.docx
Financial Institutions Describe each of the following financial instit.docxFinancial Institutions Describe each of the following financial instit.docx
Financial Institutions Describe each of the following financial instit.docx
 
Financial ratio analysis is conducted by managers- equity investors- l.docx
Financial ratio analysis is conducted by managers- equity investors- l.docxFinancial ratio analysis is conducted by managers- equity investors- l.docx
Financial ratio analysis is conducted by managers- equity investors- l.docx
 
Files are logical units of information created by processes- A disk ma.docx
Files are logical units of information created by processes- A disk ma.docxFiles are logical units of information created by processes- A disk ma.docx
Files are logical units of information created by processes- A disk ma.docx
 
Fill in the blank Accurate determination of abundances of isotopes bec.docx
Fill in the blank Accurate determination of abundances of isotopes bec.docxFill in the blank Accurate determination of abundances of isotopes bec.docx
Fill in the blank Accurate determination of abundances of isotopes bec.docx
 
Exercise 16-16 On January 1- 2012- Chang Corp- had 564-000 shares of c.docx
Exercise 16-16 On January 1- 2012- Chang Corp- had 564-000 shares of c.docxExercise 16-16 On January 1- 2012- Chang Corp- had 564-000 shares of c.docx
Exercise 16-16 On January 1- 2012- Chang Corp- had 564-000 shares of c.docx
 
QUESTION 3 Associate each application with the type of transmisision-.docx
QUESTION 3 Associate each application with the type of transmisision-.docxQUESTION 3 Associate each application with the type of transmisision-.docx
QUESTION 3 Associate each application with the type of transmisision-.docx
 

Recently uploaded

會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽
會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽
會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽
中 央社
 
會考英文會考英文會考英文會考英文會考英文會考英文會考英文會考英文會考英文會考英文會考英文
會考英文會考英文會考英文會考英文會考英文會考英文會考英文會考英文會考英文會考英文會考英文會考英文會考英文會考英文會考英文會考英文會考英文會考英文會考英文會考英文會考英文會考英文
會考英文會考英文會考英文會考英文會考英文會考英文會考英文會考英文會考英文會考英文會考英文
中 央社
 
SURVEY I created for uni project research
SURVEY I created for uni project researchSURVEY I created for uni project research
SURVEY I created for uni project research
CaitlinCummins3
 

Recently uploaded (20)

An Overview of the Odoo 17 Discuss App.pptx
An Overview of the Odoo 17 Discuss App.pptxAn Overview of the Odoo 17 Discuss App.pptx
An Overview of the Odoo 17 Discuss App.pptx
 
24 ĐỀ THAM KHẢO KÌ THI TUYỂN SINH VÀO LỚP 10 MÔN TIẾNG ANH SỞ GIÁO DỤC HẢI DƯ...
24 ĐỀ THAM KHẢO KÌ THI TUYỂN SINH VÀO LỚP 10 MÔN TIẾNG ANH SỞ GIÁO DỤC HẢI DƯ...24 ĐỀ THAM KHẢO KÌ THI TUYỂN SINH VÀO LỚP 10 MÔN TIẾNG ANH SỞ GIÁO DỤC HẢI DƯ...
24 ĐỀ THAM KHẢO KÌ THI TUYỂN SINH VÀO LỚP 10 MÔN TIẾNG ANH SỞ GIÁO DỤC HẢI DƯ...
 
MichaelStarkes_UncutGemsProjectSummary.pdf
MichaelStarkes_UncutGemsProjectSummary.pdfMichaelStarkes_UncutGemsProjectSummary.pdf
MichaelStarkes_UncutGemsProjectSummary.pdf
 
會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽
會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽
會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽會考英聽
 
Capitol Tech Univ Doctoral Presentation -May 2024
Capitol Tech Univ Doctoral Presentation -May 2024Capitol Tech Univ Doctoral Presentation -May 2024
Capitol Tech Univ Doctoral Presentation -May 2024
 
會考英文會考英文會考英文會考英文會考英文會考英文會考英文會考英文會考英文會考英文會考英文
會考英文會考英文會考英文會考英文會考英文會考英文會考英文會考英文會考英文會考英文會考英文會考英文會考英文會考英文會考英文會考英文會考英文會考英文會考英文會考英文會考英文會考英文
會考英文會考英文會考英文會考英文會考英文會考英文會考英文會考英文會考英文會考英文會考英文
 
Exploring Gemini AI and Integration with MuleSoft | MuleSoft Mysore Meetup #45
Exploring Gemini AI and Integration with MuleSoft | MuleSoft Mysore Meetup #45Exploring Gemini AI and Integration with MuleSoft | MuleSoft Mysore Meetup #45
Exploring Gemini AI and Integration with MuleSoft | MuleSoft Mysore Meetup #45
 
MOOD STABLIZERS DRUGS.pptx
MOOD     STABLIZERS           DRUGS.pptxMOOD     STABLIZERS           DRUGS.pptx
MOOD STABLIZERS DRUGS.pptx
 
Mattingly "AI and Prompt Design: LLMs with Text Classification and Open Source"
Mattingly "AI and Prompt Design: LLMs with Text Classification and Open Source"Mattingly "AI and Prompt Design: LLMs with Text Classification and Open Source"
Mattingly "AI and Prompt Design: LLMs with Text Classification and Open Source"
 
II BIOSENSOR PRINCIPLE APPLICATIONS AND WORKING II
II BIOSENSOR PRINCIPLE APPLICATIONS AND WORKING IIII BIOSENSOR PRINCIPLE APPLICATIONS AND WORKING II
II BIOSENSOR PRINCIPLE APPLICATIONS AND WORKING II
 
The Last Leaf, a short story by O. Henry
The Last Leaf, a short story by O. HenryThe Last Leaf, a short story by O. Henry
The Last Leaf, a short story by O. Henry
 
....................Muslim-Law notes.pdf
....................Muslim-Law notes.pdf....................Muslim-Law notes.pdf
....................Muslim-Law notes.pdf
 
An Overview of the Odoo 17 Knowledge App
An Overview of the Odoo 17 Knowledge AppAn Overview of the Odoo 17 Knowledge App
An Overview of the Odoo 17 Knowledge App
 
PSYPACT- Practicing Over State Lines May 2024.pptx
PSYPACT- Practicing Over State Lines May 2024.pptxPSYPACT- Practicing Over State Lines May 2024.pptx
PSYPACT- Practicing Over State Lines May 2024.pptx
 
“O BEIJO” EM ARTE .
“O BEIJO” EM ARTE                       .“O BEIJO” EM ARTE                       .
“O BEIJO” EM ARTE .
 
How to Manage Closest Location in Odoo 17 Inventory
How to Manage Closest Location in Odoo 17 InventoryHow to Manage Closest Location in Odoo 17 Inventory
How to Manage Closest Location in Odoo 17 Inventory
 
Removal Strategy _ FEFO _ Working with Perishable Products in Odoo 17
Removal Strategy _ FEFO _ Working with Perishable Products in Odoo 17Removal Strategy _ FEFO _ Working with Perishable Products in Odoo 17
Removal Strategy _ FEFO _ Working with Perishable Products in Odoo 17
 
BỘ LUYỆN NGHE TIẾNG ANH 8 GLOBAL SUCCESS CẢ NĂM (GỒM 12 UNITS, MỖI UNIT GỒM 3...
BỘ LUYỆN NGHE TIẾNG ANH 8 GLOBAL SUCCESS CẢ NĂM (GỒM 12 UNITS, MỖI UNIT GỒM 3...BỘ LUYỆN NGHE TIẾNG ANH 8 GLOBAL SUCCESS CẢ NĂM (GỒM 12 UNITS, MỖI UNIT GỒM 3...
BỘ LUYỆN NGHE TIẾNG ANH 8 GLOBAL SUCCESS CẢ NĂM (GỒM 12 UNITS, MỖI UNIT GỒM 3...
 
SURVEY I created for uni project research
SURVEY I created for uni project researchSURVEY I created for uni project research
SURVEY I created for uni project research
 
Dementia (Alzheimer & vasular dementia).
Dementia (Alzheimer & vasular dementia).Dementia (Alzheimer & vasular dementia).
Dementia (Alzheimer & vasular dementia).
 

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.