The auditor while verifying prepaid insurance has concluded that there is inadequate insurance of bu...........

Auditing Audit and auditor's report

The auditor while verifying prepaid insurance has concluded that there is inadequate insurance of building, He should__

Modify his audit report

Insist it should be disclosed in the notes to financial statements

Write it in letter of weakness

Both (b) and (c)

छोटे Courses बड़े Results

Master Audit and auditor's report

Prepare through Micro-courses

Try Now

Explanation:

- Modify his audit report: This is usually done for material misstatements or when the auditor cannot obtain sufficient evidence, not for issues like inadequate insurance.

- Insist it should be disclosed in the notes to financial statements: This option highlights the potential impact of inadequate insurance on the financial standing of the entity.

- Write it in letter of weakness: This option involves communicating the issue to management or those charged with governance, addressing internal control weaknesses or deficiencies.

- Both (b) and (c): The issue should be mentioned in the financial statement notes and communicated to management as a weakness.