A client’s lawyer is unable to form a conclusion about the likelihood of an unfavorable outcome of pending litigation because of inherent uncertainties. If the litigation’s effect on the client’s financial statements could be material, the auditor most likely would:
A.
issue a qualified opinion in the auditor’s report because of the lawyer’s scope limitation.
B.
withdraw from the engagement because of the lack of information furnished by the lawyer.
C.
disclaim an opinion on the financial statements because of the materiality of the litigation’s effect.
D.
add an explanatory paragraph to the auditor’s report because of the uncertainty.
Through God all things can happen!
“You never fail until you stop trying.”
― Albert Einstein
When I was young, I used to admire intelligent people;as I grow older, I admire kind people.
“Just keep swimming, just keep swimming.”
FAR= 72-84
Audit= 73-82
BEC= 74-75
Reg=77