a. Disclaimer of Opinion can be provided as full information to provide a qualified report is not been provided.
b. Qualified opinion should be given as the company is not following required accounting statements.
c. Qualified opinion should be given as the company is not following the appropriate method for accounting the inventory and it is putting material effect on the financial statements.
f. Disclaimer of opinion : As the auditor was restricted to verify property, plant and equipment of the company. Disclaimer of opinion is expressed by an Auditor when the possible effect of limitation on scope of the audit is so material and pervasive that the auditor has not been able to obtain sufficient appropriate audit evidence.
QUESTION 2 (24 MARKS) Indicate the type of opinion that should be expressed in each of...
A client has been using the previous Accounting standards in preparing its accounts .This has lead to material misstatements in a number of assets as well as a substantial misstatement of profit .Due to its wanting to just finalise its accounts it is not prepared to amend its financial statements although it can calculate the extent of the misstatements. which is disallowed under the Australian Accounting Standards.ndicate the type of opinion that should be expressed in each of the following...
principles of auditing chapter 2 QUESTION 9 In a financial statement audit, inherent risk represents A. The risk that the auditor fails to modify materially misstated financial statements. B. The risk that misstatements could occur and not be prevented or detected by the system of internal control. C. The susceptibility of an account balance to misstatement that could be material. D. The risk that misstatements could occur and not be detected by the auditor's procedures. QUESTION 10 An auditor strives...
23. The National Association of Insurance Commissioner (NAIC) requires your insurance company client to present certain supplementary information in addition to the basic financial statements. However, while not required for the basic financial statements, your client has omitted the information required by the NAIC. 24. A client holds a note receivable consisting of principal and accrued interest, payable during the next fiscal period. The note's maker recently filed a voluntary bankruptcy petition, but your client failed to reduce the recorded...
1. As a part of auditing depreciation expense the auditor tests whether the client has followed a consistent policy and the calculations are correct. Which of the following audit objectives is the auditor addressing? A) Cut-off B) Occurrence C) Completeness D) Accuracy 2. The auditor used positive confirmations to test accounts receivable, but several of the confirmations were not returned. Which of the following auditing procedures would the auditor perform on the non-responses? A) Inspect shipping documents to verify that...
Statements Answer 1. The term relates to the quantity of evidence that the auditors should obtain. The amount of evidence that is considered sufficient varies with the reliability of the evidence. The risk of material misstatement is composed of two risks that the auditor assesses, those risks are inherent risk and risk. 4. Tests of controls and are referred to as "further audit procedures." The audit approach of evaluating financial statement information by a study of relationships among financial and...
Match each statement below with the type of audit opinion/report that would most likely be issued in the circumstance. Answer choices may be used once, multiple times, or not at all. (1)The auditors determined that sufficient appropriate evidence could not be obtained because inventory records were destroyed in a fire. (2)The client failed to write down certain assets that it determined were impaired. The reasons for reporting the assets at cost instead were disclosed in the notes to the financial...
Question 1( 8 marks) The following cover various ethical situations .For each you need to state whether there has been a violation or no violation of a general ethical principle and if there is a violation which ethical principle is violated.You need to also to briefly outline the reason for your answer in each situation . ( a) The Berowra Accountants are advertising a special in the local paper that they guarantee to provide their clients with a tax refund...
Auditing Question two Mukwa is a privately owned business that sells medical product and devices to hospitals, clinics and the public. Certain changes have occurred in Mukwa during the year undergoing the audit. The auditor needs to evaluate the effect these changes have on audit risk and procedures.. Client changes: 1. An internal audit department headed by the finance director has been established. 2. A new inventory control system has been installed that reduces the access of unauthorized parties. 3....
These are more choices to choose from. John Josephs, an audit manager for Tip, Acanoe & Tylerto, was asked to speak at a dinner meeting of the local Small Business Administration Association. The president of the association has suggested that he talk about the various phases of the audit process to help small business owners better understand what auditors do. John has asked you, his trusted assistant, to prepare an outline for his speech. He suggests that you answer the...
B) Multiple choices: 60 points: for each statement circle the best answer. 1) The three requirements for becoming a CPA include all but which of the following A) Uniform CPA examination requirement B) Educational requirements C) Character requirements D) Experience requirement 2) The International Standards on Auditing (ISAs) A) are issued by the AICPA B) override a country's regulations governing the audit of a company C) has many of the same standards as the Auditing Standards Board (ASB) D) must...