CPA · Question 69 · Area IV: Forming Conclusions and Reporting
An auditor is auditing the financial statements of a nonissuer. The auditor identifies a material inconsistency between the audited financial statements and the other information included in the annual report. The financial statements are correct, but the other information is incorrect. Management refuses to correct the other information. What should the auditor do?
Answer options:
Issue a qualified opinion on the financial statements.
Issue an adverse opinion on the financial statements.
Include an other-matter paragraph in the auditor's report describing the material inconsistency, or withhold the report/withdraw.
Ignore the inconsistency since the financial statements are correct.
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