If management insists on financial statement disclosures that the auditor finds unacceptable,the auditor can withdraw from the engagement or

Question

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If management insists on financial statement disclosures that the auditor finds unacceptable, the auditor can withdraw from the engagement. This option is provided under the International Standards on Auditing (ISA 210) and is considered the most appropriate action for the auditor. It ensures that the auditor maintains their independence and integrity and avoids being associated with misleading financial statements. The other options such as negotiating with management or modifying audit opinions may compromise the auditor's independence and risk ethical violations. Therefore, option A is the best choice.

If Management Insists on Financial Statement Disclosures That the Auditor