Final answer:
When a client decides not to record an auditor's proposed adjustments that are collectively not material, it is important to consider the implications on the financial statement presentation. The auditor should express a qualified or disclaimer of opinion in such cases. The decision may have implications on the auditor's report and the user's perception of the financial statements.
Step-by-step explanation:
When a client decides not to record an auditor's proposed adjustments that are collectively not material, it means that the adjustments would not have a significant impact on the financial statements. However, it is important to consider the implications of this decision on the financial statement presentation.
In this case, if the client insists on issuing the financial statements based on the unadjusted numbers, the auditor should express a qualified or disclaimer of opinion. These opinions indicate that the auditor could not obtain sufficient audit evidence and therefore cannot provide an opinion on the financial statements as a whole. It is essential to maintain the integrity and accuracy of the financial statements and provide a true and fair view of the client's financial position and performance.
Overall, the decision not to record non-material proposed adjustments may have implications on the auditor's report and the user's perception of the financial statements.