What factors as the auditor of record, should you consider in deciding whether to issue a qualified or an adverse opinion in your final audit report?

This week is the second part of your Course Project. For complete details on the project, please refer to the Course Project – Introduction in Week 03.

 

Explanatory and Opinion Paragraphs

 

Kobyashi Moru reports its inventory, fixed assets, depreciation and cost of goods sold on a current value basis (fair market value on the date of the financial statements).

 

Such accounting violates the cost principle of US GAAP. There is a disclosure of the pertinent facts stating this in a footnote on the key financial statements.

 

What factors as the auditor of record, should you consider in deciding whether to issue a qualified or an adverse opinion in your final audit report?

 

Prepare the following paragraphs that include the appropriate language.

 

  1. A qualified opinion
  2. An adverse opinion

 

Use your text and scholarly research references to guide your writing.

You will find significant scholarly research on this subject. Your sources should be cited using APA style for citation. You should also prepare a reference page that lists your sources.

 

Answer

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