Question

During audit of XYZ Ltd., the auditor noted that the management concealed certain pending litigations that could affect profitability. However, the CFO insisted it was not material. The auditor suspects deliberate omission. Under SA 200 and SA 240, what should the auditor do?

A Accept management’s view
B Ignore since it's immaterial
C Extend audit procedures and consider modifying opinion
D Resign from audit
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