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Reference Analysis Question 17–21 in the textbook.

An accountant of an audit client made the following statement: “It is important to read the notes to financial statements, even though they are presented in technical language and are incomprehensible. Auditors may reduce their exposure to third-party liability by stating something in the notes that contradicts completely what the client has presented in the balance sheet or income statement.” Evaluate the above statement and indicate:

a) areas of agreement, if any

b) areas of misconception, incompleteness, or fallacious reasoning included in the statement

 

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