An Auditor Reads the Letter of Transmittal Accompanying a County's

question 419

Multiple Choice

An auditor reads the letter of transmittal accompanying a county's comprehensive annual financial report and identifies a material inconsistency with the financial statements. The auditor determines that the financial statements do not require revision. Which of the following actions should the auditor take?

• A) Request that the client revise the letter of transmittal.
• B) Include an explanatory paragraph in the auditor's report.
• C) Consider withdrawing from the engagement.
• D) Request a client representation letter acknowledging the inconsistency.

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Definitions:

National Legislation

Laws and regulations enacted by a country’s legislative body that govern the actions and policies within that country.

Collective Bargaining

A method where labor unions and employers negotiate contracts to determine salaries, working hours, benefits, and other employment terms.

Samuel Gompers

A prominent labor union leader who founded the American Federation of Labor (AFL) and was instrumental in advocating for workers' rights.

AFL

The American Federation of Labor, a national federation of labor unions in the United States, formed in 1886 to advocate for improved job conditions and rights for workers.