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QUESTION

While performing analytical procedures, an auditor at A.E. CPA firm uncovers a critical audit matter involving a complex revenue recognition issue that, if unresolved, could materially impact the fina

While performing analytical procedures, an auditor at A.E. CPA firm uncovers a critical audit matter involving a complex revenue recognition issue that, if unresolved, could materially impact the financial statements. In your initial post, answer the following questions:

  1. Identify the considerations that should guide the decision on the type of audit opinion to issue.
  2. Should the auditor opt for an unqualified opinion, a qualified opinion, or potentially express an adverse opinion?
  3. Analyze the ethical, professional, and legal aspects involved in this decision, and assess the potential consequences for both the A.E. CPA firm and its auditing client based on the chosen course of action.

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