O’Sullivan, a public accountant, has completed the audit of Sarawak

O’Sullivan, a public accountant, has completed the audit of Sarawak Lumber Supply Co. Ltd. and has issued a standard unqualified report. In addition to a report on the overall financial statements, the company needs a special audit report on three specific accounts: sales, net fixed assets, and inventory valued at FIFO. The report is to be issued to Sarawak’s lessor, who bases annual rentals on these three accounts. O’Sullivan was not aware of the need for the special report until after the overall audit was completed.
a. Explain why O'Sullivan is unlikely to be able to issue the special audit report without additional audit tests.
b. What additional tests are likely to be needed before the special report can be issued?
c. Assume that O’Sullivan is able to satisfy all the requirements needed to issue the special report. Write the report, making any necessary assumptions.
Audit Report
The audit report is issued by a certified public accountant who is appointed by the shareholders to provide assurance upon the truth and fairness of the financial statements prepared by the managers of the company. Audit report contains the...


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