@Future Ninja Good to hear that.
Here's a little something for discussion:
Mariam almas posted a question about inconsistency of other information.
Mary 2496 said:
If other information is not consistent (as in supp. information) with the financial statements, the audit report would likely include an “other matter” paragraph explaining the situation. It would still be an unqualified opinion as long as the financial statements are not misleading and are worthy of an unqualified opinion.
rzrbkfaith said:
If other information is not consistent with the financial statements, materiality comes into play. Is it material? Is it material and pervasive? If its immaterial, you can still have an unmodified opinion. If its material but not pervasive, qualified opinion. Material and pervasive is adverse.
If management prevents you from obtaining sufficient audit evidence or you are unable to obtain sufficient evidence for any reason, then you will either issue a qualified or disclaimer opinion. You might even consider withdrawing depending on the situation.
Now here's the question:
An auditor concludes prior to the report release date that a material inconsistency exists in the other information in an annual report to shareholders. This report contains audited financial statements. The auditor also concludes that the financial statements do not require revision, but the other information does. If the client refuses to revise or eliminate the material inconsistency, the auditor may
A. Revise the auditor’s report to include a separate other-matter paragraph describing the material inconsistency.
B. Consider the matter closed because the other information is not in the audited statements.
C. Express a qualified opinion after discussing the matter with the board.
D. Disclaim an opinion after explaining the material inconsistency in a separate explanatory paragraph.
.