As a result of Scott London's actions to give inside tips about two audit clients, KPMG took each of the following actions except for
A) Admitted London violated the firm's independence rules
B) Issued a modified audit opinion on the clients financial statements because of the adverse actions of London
C) Resigned from the engagements of the two clients
D) Withdrew its audit report on the two clients

Question

Quizplus · Accepted Answer

KPMG took all of the listed actions except for issuing a modified audit opinion on the clients' financial statements because of the adverse actions of London. A modified opinion would indicate that the financial statements may not be reliable, which would reflect poorly on both KPMG and the clients. Instead, KPMG resigned from the engagements and withdrew its audit reports on the two clients.

As a Result of Scott London's Actions to Give Inside