2 Under relevant ISAS, what are the auditor's responsibility with regards Preparing an audit report (ISA...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
2 Under relevant ISAS, what are the auditor's responsibility with regards Preparing an audit report (ISA 700) • Subsequent events (ISA 560 . Going concern (ISA 570) • Management representations and legislation (ISA 580) • Emphasis of matter (ISA 706) (Write a paragraph on each topic) What are the implications for the auditing company who issued an unmodified report and the company collapsed 4 months later? 31) What form (type) of modified opinion would you give to each of the following scenarios? a) During the course of the final audit work, our client had a major computer failure. Year-end data could not be transmitted to the head office and so we decided to visit the branch situated at Ayr. The night before our intended arrival the electrical fault which caused the computer to break down occurred again and this time started a fire which destroyed the accounts section with all the records, computer back-ups included. b) Your client, Alnwelf Ltd, has many investments in animal enterprises throughout the world. Amongst them is a private investment in an animal welfare farm in Surrey amounting to £150,000. Although you've seen this sum going out of the Bank account, no documentation has yet been received from the organisation that you can verify. This is the only item that you haven't checked as you managed to check everything else. c) The General Manager of Substop PLC has Insisted that his accountants take into account this year the turnover arising from a 6 year hire contract for 3 of their giant Big Hole diggers. This amounts to £700,000. The profit figure before doing this is - well it's actually a loss- of £254,200. d) The accountant of Kelkos Engineering Ltd, has credited a government grant of £8000,000 to 'cost of sales' in the income statement. The grant was received on plant purchased this year which has an estimated life of six years. 311) Select one of your decisions to 3 ) and prepare the Opinion section of the report 2 Under relevant ISAS, what are the auditor's responsibility with regards Preparing an audit report (ISA 700) • Subsequent events (ISA 560 . Going concern (ISA 570) • Management representations and legislation (ISA 580) • Emphasis of matter (ISA 706) (Write a paragraph on each topic) What are the implications for the auditing company who issued an unmodified report and the company collapsed 4 months later? 31) What form (type) of modified opinion would you give to each of the following scenarios? a) During the course of the final audit work, our client had a major computer failure. Year-end data could not be transmitted to the head office and so we decided to visit the branch situated at Ayr. The night before our intended arrival the electrical fault which caused the computer to break down occurred again and this time started a fire which destroyed the accounts section with all the records, computer back-ups included. b) Your client, Alnwelf Ltd, has many investments in animal enterprises throughout the world. Amongst them is a private investment in an animal welfare farm in Surrey amounting to £150,000. Although you've seen this sum going out of the Bank account, no documentation has yet been received from the organisation that you can verify. This is the only item that you haven't checked as you managed to check everything else. c) The General Manager of Substop PLC has Insisted that his accountants take into account this year the turnover arising from a 6 year hire contract for 3 of their giant Big Hole diggers. This amounts to £700,000. The profit figure before doing this is - well it's actually a loss- of £254,200. d) The accountant of Kelkos Engineering Ltd, has credited a government grant of £8000,000 to 'cost of sales' in the income statement. The grant was received on plant purchased this year which has an estimated life of six years. 311) Select one of your decisions to 3 ) and prepare the Opinion section of the report
Expert Answer:
Answer rating: 100% (QA)
Here is my answer to your questions Preparing an audit report ISA 700 According to ISA 700 the auditors obligation with respect to writing an audit report is to develop an opinion on the financial sta... View the full answer
Related Book For
Auditing a business risk appraoch
ISBN: 978-0324375589
6th Edition
Authors: larry e. rittenberg, bradley j. schwieger, karla m. johnston
Posted Date:
Students also viewed these law questions
-
An ear of Smart Printing has begun, which uses state of art technology to connect and communicate between Smartphones and Printers. Also future innovations will introduce standardized mobile printing...
-
The Crazy Eddie fraud may appear smaller and gentler than the massive billion-dollar frauds exposed in recent times, such as Bernie Madoffs Ponzi scheme, frauds in the subprime mortgage market, the...
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
Examples using activity-based costing generally show that traditional costing systems ________ high-volume, less complex products and ________ low-volume, complex products undercost; overcost...
-
In this chapter we learn that the cause of acceleration is given by Newton's second law: a = Fnet/m. Show that the acceleration in the preceding problem results from a net force of 15 N exerted on a...
-
Explain four strategies for improving listening skills.
-
\(p \vee q \leftrightarrow r\) Given: \(p\) : Frodo is a hobbit, \(q\) : Gandalf is a wizard, \(r\) : Frodo and Samwise will take the ring to Mordor, and \(s\) : Gollum will help Frodo get into...
-
Error Analysis and Correcting Entries A partial trial balance of Dickinson Corporation is as follows on December 31, 2010. Additional adjusting data: 1. A physical count of supplies on hand on...
-
eBookShow Me HowQuestion Content AreaProviding for Doubtful AccountsAt the end of the current year, the accounts receivable account has a debit balance of $1,021,000 and sales for the year total $ 2...
-
1. What is the cost of debt for Sunrise Bakery? 2. What is their cost of equity? 3. What is the WACC? 4. Which cost of capital should be used to evaluate the feasibility of the oven purchase? 5....
-
1. Do problem 12 on page 193 in the textbook, using the reconciliation form on the next page. The information for the problem is included below for your convenience. RECONCILING CHECKING ACCOUNTS For...
-
Determine the internal forces in each member of the below truss by using the Method of Joints. First find the external reaction forces at the supports at points A and D add to the drawing below....
-
Analyze the application of advanced urban design principles, such as transit-oriented development (TOD) and mixed-use zoning strategies, in promoting compact, walkable neighborhoods with diverse land...
-
2. Suppose you are short selling stocks on margin. The margin requirement is 50%. Right now, you put $1,000 of your own money and the stock you want to short today has a price of $40 per share.
-
In this case study involving an anonymous hospital, nursing department leaders sought to improve efficiency of their staff's shift change assignments. Upon value stream mapping the process, team...
-
Currently working on Project paper with title "Digital Trade in Malaysia and It's implication to ASEAN country" Base on title above, what is the suitable Dependent variables and Independent...
-
10. Use the tax schedule below and calculate: A. the amount of taxes that a corporation would pay if it has $18,000,000 of taxable income B. the average tax rate for the firm that has $18,000,000 of...
-
With your classmates, form small teams of skunkworks. Your task is to identify an innovation that you think would benefit your school, college, or university, and to outline an action plan for...
-
What are the major functions of internal audit?
-
Multiple Choice Questions 1. In a common-law suit for damages, the jury awards the plaintiffs $1 million. The jury also determines that management is 80% at fault, the auditors are 15% at fault, and...
-
The AICPA has issued attestation standards in recognition that attestation services can be much broader than audits of an entity's financial statements. One type of an attestation is a "fairness...
-
Rewrite the solution to Problem 3 and identify the initial value Green's functions. Data from Problem 3 Find product solutions, \(u(x, t)=b(t) \phi(x)\), to the wave equation satisfying the boundary...
-
Established less than 50 years ago, Honda Motor Co. Ltd. of Japan is a leading international manufacturer of automobiles and the largest manufacturer of motorcycles in the world. As a Japanese...
-
Rewrite the solution to Problem 2 and identify the initial value Green's function. Data from Problem 2 Find product solutions, \(u(x, t)=b(t) \phi(x)\), to the heat equation satisfying the boundary...
Study smarter with the SolutionInn App