When There Is a Material Inconsistency Between the Financial Report

question 34

Multiple Choice

When there is a material inconsistency between the financial report and other information in the annual report and the client refuses to change the information, the auditor should:

• A) include an emphasis of matter section in the audit report.
• B) issue a qualified opinion.
• C) do nothing as the audit opinion is confined to the financial report.
• D) advise ASIC and the ASX.

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Definitions:

Legal Position

A stance or argument made based on laws, regulations, and case law in litigation or legal matters.

Chauffeur

A person employed to drive a private or hired car, especially a luxury vehicle typically for someone else.

BMW

A German multinational corporation that produces luxury vehicles and motorcycles.

Sued By Principal

The action where a principal, often in a legal or business context, initiates a lawsuit against another party.