Six Months After Issuing an Unqualified Opinion on Audited Financial

question 125

Multiple Choice

Six months after issuing an unqualified opinion on audited financial statements, an auditor discovered that the engagement personnel failed to confirm several of the client's material accounts receivable balances. The auditor should first:

• A) Request the permission of the client to undertake the confirmation of accounts receivable.
• B) Perform alternative procedures to provide a satisfactory basis for the unqualified opinion.
• C) Assess the importance of the omitted procedures to the auditor's ability to support the expressed opinion.
• D) Inquire whether there are persons currently relying, or likely to rely, on the unqualified opinion.

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Definitions:

Persuasion

The act of convincing someone to do or believe something through reasoning or the use of temptation.

Cognitive Dissonance

The psychological discomfort experienced by an individual when holding two or more contradictory beliefs, ideas, or values at the same time.

Beliefs

Convictions or acceptances that something exists or is true, especially without proof.

Behaviors

The actions, reactions, or conduct of an individual, group, or system, often analyzed in psychological or sociological contexts.