Your client is a large financial institution in Canada.Canadian regulators require that financial statements for such institutions have an audit report that provides an opinion on the consistency of accounting policies.How do these events affect the independent auditor's report?
A)The auditor would add an other matter paragraph titled "Report on Other Legal and Regulatory Requirements."
B)The auditor would add an emphasis of matter paragraph titled "Report on Other Legal and Regulatory Requirements."
C)The auditor would use a standard unmodified auditor's report.
D)The auditor would state in the opinion paragraph that the financial statements were prepared in accordance with the legislation for financial institutions.

Question

Quizplus · Accepted Answer

The auditor would add an "other matter paragraph" to address specific legal or regulatory requirements, such as the consistency of accounting policies, which is beyond the scope of a standard unmodified auditor's report.

Your Client Is a Large Financial Institution in Canada