Types of Audit Opinions Aloe Products is an online retailer of lotions and other beauty supplies. The company records revenues at the time that the customer orders are placed on the website, rather than when goods are shipped. Goods are typically
shipped two days after the order is places. The auditor determines that the amount of orders placed but not shipped as of the balance sheet date is not material. REQUIRED: Which type of audit report would you suggest be issued and why?
Although the client is not following GAAP on revenue recognition, the amount is immaterial. Therefore, the standard unqualified report would be the most probable type of report to issue.
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