When the auditors cannot satisfy themselves as to the accuracy of ending inventory and a material misstatement may exist, they normally may still give an unqualified opinion on the client's income statement. A) TrueB) False

Question

Julius Crane

Business

12 January, 22:25

When the auditors cannot satisfy themselves as to the accuracy of ending inventory and a material misstatement may exist, they normally may still give an unqualified opinion on the client's income statement. A) TrueB) False

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Answers (1)

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Maritza Johnston · Answer 1

B) False

Explanation:

How can anyone give an opinion about something that they don't know or aren't sure of? If you don't have accurate information about the merchandise inventory, how can you be sure what were the total sales? Or if you cannot determine the materials inventory, how can you calculate how many units were produced? Guessing is not an option when you are auditing a business.