A company that trades predominately in cash was found to have no controls over the cash accounting system. As a consequence, you as auditor cannot verify sales. All other areas are fine and you are happy with them.
Which audit report would you issue:

Question

Quizplus · Accepted Answer

An "Except for" report is issued when the auditor concludes that the financial statements are fairly presented, except for a specific issue. In this case, the inability to verify sales due to lack of controls over the cash accounting system is a significant issue that prevents the auditor from fully verifying the financial statements' accuracy, warranting an "Except for" report.

A Company That Trades Predominately in Cash Was Found to Have