Describe the audit opinion that should be given and explain why. a)The auditor was not allowed access to the client’s accounting records, ledgers, supporting documentations, reports and general information, as the client has outsourced their entire accounting function to an external service provider. The service provider has denied access to the auditor after several requests were made verbally and in writing.
Describe the audit opinion that should be given and explain why. a)The auditor was not allowed access to the client’s accounting records, ledgers, supporting documentations, reports and general information, as the client has outsourced their entire accounting function to an external service provider. The service provider has denied access to the auditor after several requests were made verbally and in writing.
Chapter1: Comprehensive Cases
Section1.7: Navistar International Corporation
Problem 3Q
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Describe the audit opinion that should be given and explain why.
a)The auditor was not allowed access to the client’s accounting records, ledgers, supporting documentations, reports and general information, as the client has outsourced their entire accounting function to an external service provider. The service provider has denied access to the auditor after several requests were made verbally and in writing.
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The auditor’s audit opinion is based on applying appropriate professional skepticism in giving a qualified audit in case they are denied access to the financial statements
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