An auditor has been asked to report on the balance sheet of Kane Company but not on the other basic financial statements.The auditor will have access to all information underlying the basic financial statements.Under these circumstances,the auditor:
A)May accept the engagement.
B)May accept the engagement but must disclaim an opinion because of an inability to apply the procedures considered necessary.
C)Should refuse the engagement because there is a client-imposed scope limitation.
D)Should refuse the engagement because of a departure from generally accepted auditing standards.

Question

Quizplus · Accepted Answer

Auditors can accept engagements to report on a single financial statement, such as the balance sheet, as long as they have access to all necessary information. This does not constitute a scope limitation or a departure from generally accepted auditing standards, allowing the auditor to perform the engagement and provide an appropriate opinion.

An Auditor Has Been Asked to Report on the Balance