A. Giving appropriate reasons, state the type of opinion an auditor should express in the following...

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A. Giving appropriate reasons, state the type of opinion an auditor should express in the following cases: 1. Said has conducted audit for Al Qasim LLC for the financial year ended 31 December, 2020. In his audit he found that the AlI Qasim LLC changed the method of depreciation from Straight Line to Written-down Value method during the current year. He is not convinced with the reasons and explanation given by the management. He did not find any other material misstatement in the financial statements apart from this. Type of Opinion: Reasonisk 2. The auditor of Quest Traders used analytical procedures for determining the amount of sales. By collecting information on Opening and Closing Stocks, Net Purchases and Direct and Indirect Expenses, he found that the profits are overstated, However, he was not able to obtain sufficient appropriate audit evidence for determining the accurate amount of sales. Type of Opinion: Reason(s) 3. Financial statements of Excel LLC were audited by Mr. Mohammed. He found that there are minor differences in the amounts shown in financial statements and the actual amounts from the accounting records. When he asked for explanation, the management replied that they have rounded off the amounts to Rial. In other words, they considered all figures above 500 Baiza as 1 Rial and less than 500 Baiza as 0 Rial. The auditor did not find any other misstatements in the financial statements. Type of Opinion: Reason(s) A. Giving appropriate reasons, state the type of opinion an auditor should express in the following cases: 1. Said has conducted audit for Al Qasim LLC for the financial year ended 31 December, 2020. In his audit he found that the AlI Qasim LLC changed the method of depreciation from Straight Line to Written-down Value method during the current year. He is not convinced with the reasons and explanation given by the management. He did not find any other material misstatement in the financial statements apart from this. Type of Opinion: Reasonisk 2. The auditor of Quest Traders used analytical procedures for determining the amount of sales. By collecting information on Opening and Closing Stocks, Net Purchases and Direct and Indirect Expenses, he found that the profits are overstated, However, he was not able to obtain sufficient appropriate audit evidence for determining the accurate amount of sales. Type of Opinion: Reason(s) 3. Financial statements of Excel LLC were audited by Mr. Mohammed. He found that there are minor differences in the amounts shown in financial statements and the actual amounts from the accounting records. When he asked for explanation, the management replied that they have rounded off the amounts to Rial. In other words, they considered all figures above 500 Baiza as 1 Rial and less than 500 Baiza as 0 Rial. The auditor did not find any other misstatements in the financial statements. Type of Opinion: Reason(s)

Answer rating: 100% (QA)

1 Said will be giving a qualified opinion because there is change in accounting principal and Said i... View the full answer