ASA 720 requires the auditor to read other information in documents containing audited financial reports that pertains directly to the financial report and to compare that information to make sure that it corresponds. If there is a material inconsistency, the client should be requested to change the information. If the client refuses, the auditor should:
A) include an explanatory paragraph in the audit report or withdraw from the engagement.
B) include an emphasis of matter section in the audit report.
C) issue a qualified opinion or withdraw from the engagement.
D) issue an adverse opinion.

Question

Quizplus · Accepted Answer

The Answer of ASA 720 requires the auditor to read other information in documents containing audited financial reports that pertains directly to the financial report and to compare that information to make sure that it corresponds. If there is a material inconsistency, the client should be requested to change the information. If the client refuses, the auditor should:
A) include an explanatory paragraph in the audit report or withdraw from the engagement.
B) include an emphasis of matter section in the audit report.
C) issue a qualified opinion or withdraw from the engagement.
D) issue an adverse opinion.

ASA 720 Requires the Auditor to Read Other Information in Documents