You are the audit manager of a new client. Management of the new client has prepared...
You are the audit manager of a new client. Management of the new client has prepared its accounts in accordance with generally accepted accounting principles but you believe that the overall view presented by this financial report is not true and fair.
Outline in a report to your partner the approach that should be taken in these circumstances.
Homework Answers
I have audited the Financial Statements of M/s XYZ Limited and in my opinion, the Financial Statements are not showing the True & Fair View of the affairs of the company.
In these circumstances, these are the options available to us:-
1) To collect Additional Evidences from the Management in areas that are material and have a high risk of material misstatement.
2) If the management is denying to provide assistance to us in collecting sufficient and appropriate evidences by imposing limitations, then we should Disclaim our Opinion on the Financials Statements and should withdraw from the audit assignment.
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