The following statement is representative of attitudes and opinion sometime encountered by CPAs in their professional practices: "It is important to read the notes to financial statements, even though they often are presented in technical language and are incomprehensible.The auditors may reduce their exposure to third-party liability by stating something in the notes that contradicts completely what they have presented in the balance sheet or income statement."
Evaluate the above statement and indicate:
- Areas of agreement with the statement, if any.
- Areas of misconception, incompleteness, or fallacious reasoning included in the statement, if any.