If a client refuses to accept an auditors' report that has been modified, the public accounting firm should withdraw from the engagement and give its reasons in writing to the board of directors except when:
A) The auditor is unable to obtain sufficient appropriate evidence about a suspected illegal act
B) The client fails to account for or disclose properly a material amount connected with an illegal act
C) The auditor is unable to estimate amounts involved in an illegal act
D) The auditor is unable to observe the physical inventory

Question

Quizplus · Accepted Answer

If the auditor is unable to observe the physical inventory, it may not necessarily require withdrawal from the engagement, as alternative procedures can often be performed to obtain sufficient evidence.

If a Client Refuses to Accept an Auditors' Report That