When the auditors cannot satisfy themselves as to the accuracy of ending inventory and a material misstatement may exist,they normally may still give an unqualified opinion on the client's income statement.

Question

Quizplus · Accepted Answer

When auditors cannot satisfy themselves as to the accuracy of ending inventory and a material misstatement may exist, they cannot give an unqualified opinion on the client's income statement. Instead, they would need to modify their opinion or include an explanatory paragraph in their audit report.

When the Auditors Cannot Satisfy Themselves as to the Accuracy