Material impact on the financial statements


Problem 1. Assume that you are an auditor and as part of your routine audit, you discover a fraud being committed by the accounts receivables manager. The fraud is large enough to have a material impact on the financial statements. How does this finding affect the rest of your audit?

Problem 2. Do client departures from GAAP require the auditor to issue a qualified report? Explain.

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Other Management: Material impact on the financial statements
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