With respect to Lectronic's advance to Computer Credit, Mr. Scott
A. Needs no disclosure in his auditor's report because the common ownership of the two companies has been adequately disclosed.
B. Needs no disclosure in his auditor's report because the auditor is not expected to be an expert appraiser of property values.
C. Should be concerned in formulating his auditor's opinion primarily with the issue of collectibility from Lectronic's viewpoint.
D. Should be concerned in formulating his auditor's opinion primarily with the consolidated financial position of the two
Ans: C. Should be concerned in formulating his auditor's opinion primarily with the issue of collectibility from Lectronic's viewpoint.
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