A client has an inappropriate method of accounting for its pension liability on the balance sheet. The resulting misstatement is material, but the auditor does not consider its effect to be pervasive. The auditor is unable to convince the client to alter its accounting treatment. The rest of the financial statements are fairly stated in the auditor's opinion. Which kind of audit report should the auditor issue under these circumstances?

A generally accepted account title is

a. Prepaid Revenue. b. Appropriation for Contingencies. c. Earned Surplus. d. Reserve for Doubtful Accounts.

Sending reports and proposals as PDF files

A) reduces the likelihood of inadvertently spreading macro viruses and other contaminations. B) increases the chances of inadvertently spreading macro viruses and other contaminations. C) gives you less control over how the document is displayed on the audience's computer. D) is likely to frustrate audiences, since they require expensive software to open. E) makes it especially difficult to gather comments and other input from reviewers.