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

Question

Quizplus · Accepted Answer

If management insists on financial statement disclosures that the auditor finds unacceptable, the auditor can withdraw from the engagement. This is because the auditor's independence and professional judgment may be compromised if required to issue an opinion on incomplete or misleading financial statements. Therefore, withdrawing from the engagement is a reasonable and appropriate course of action in such circumstances.

If Management Insists on Financial Statement Disclosures That the Auditor