An auditor concludes that an outstanding lawsuit against the client is significant enough that it warrants drawing the users attention to it in the audit report.Assuming the lawsuit is fairly disclosed,no mention of it is made in the standard opinion sentence.

Question

Quizplus · Accepted Answer

If the lawsuit is fairly disclosed, the auditor may include an explanatory paragraph or an emphasis of matter paragraph in the audit report to draw the user's attention to it, but there would be no impact on the standard opinion sentence. Therefore, the statement is true.

An Auditor Concludes That an Outstanding Lawsuit Against the Client